Like every other part of the country, Colorado has seen its share of foreclosures and the state of the housing market in the Centennial State is soft at present. Prices are at historic lows and the market is flooded with great, very affordable properties. In any other circumstances, it would be an incredible time for a Colorado first time home buyer to make their move and stop renting. However, there’s one problem here which is causing difficulty for many people in the Denver metropolitan area and elsewhere throughout Colorado: the credit crunch. A result of the housing bubble’s burst, lenders are extremely cautious about giving anyone a Denver mortgage loan, even if they’re an excellent candidate for a home loan on paper.
Banks are especially risk averse right now and if you qualify and are actually offered a loan by a Colorado mortgage lender, the odds are that it will be at a very high interest rate. These rates may even be high enough to make buying a home simply too expensive for the average Colorado first time home buyer. Even so, there are ways of not only obtaining the home loan you need, but actually getting a better deal from a Denver mortgage lender.
It’s all about choosing your Denver home mortgage lender wisely. Certainly, there are a lot of lenders who will flatly refuse to extend you a loan and others who will only do so at exorbitant interest rates; but there are also lenders who can offer you a loan at terms which let you take advantage of the great selection and low prices which are currently being seen in Denver and throughout the state of Colorado.
So what kind of Colorado mortgage lender should you be looking for if you’ve been having a hard time getting the financing you need to purchase your own home and stop renting? The answer is a FHA approved lender; not every Denver mortgage lender has the approval of this federal program – but choosing a lender which is FHA approved could very well be the way for you and your family to become homeowners and start building equity rather than paying rent for someone else’s property. In fact, even if you would qualify for a home loan otherwise, it might be worth looking into a FHA home loan. This program offers some benefits which traditional lenders can’t provide to you as a Colorado first time home buyer.
FHA loans are insured by the US government, so there’s no need to purchase mortgage insurance; it’s all included in the loan itself. You’ll also be able to buy a home with a lower down payment, sometimes under 5% instead of the 20% or more which other lenders might require. Since buying a home is always a complicated matter, it’s best to get the help of experts – in this case, a FHA lender which is experienced in helping first time home buyers to navigate the red tape and finally hold the keys to their very own home.
Why you must stop renting
