Deciding to take the plunge and enter the Denver housing market as a first-time buyer? Great idea. Taking the first step towards turning your dream of homeownership into a reality is an important life milestone. Purchasing property in a hot market like Denver is one of the best long-term investments you can make.
The next big step after making the decision? Exploring home loan options and getting preapproved.
A mortgage preapproval letter can work wonders when interacting with real estate agents because it proves your financial stability and demonstrates your commitment to buying. Here’s the catch: all home loans are not created equal.
Settling for the first mortgage lender that preapproves you for a loan is not a great way to start a decades-long financial relationship. You want to narrow your list to Denver home loans that work for you, and to do that, you need to understand your options.
- Traditional Banks: Traditional banks and financial institutions like Chase have the backing of a major financial institution behind them, and can offer a degree of stability that some buyers find comforting.
- Credit Unions: Credit unions are smaller, member-owned financial institutions that provide shareholders with favorable interest rates that can come in handy when purchasing a home.
- Specialized Loan Companies: Increasingly, first-time buyers looking for Denver home loans are turning to streamlined, online options that focus exclusively (or near exclusively) on mortgage lending. Also, Do This Before Choosing a Mortgage Lender in Denver.
- Mutual Savings Banks: A mutual savings bank is similar to a credit union in that it is owned by its members, but unlike a credit union, it is chartered by a local or regional government.
- Local Loan Companies: There are also local loan companies that operate similar to their online counterparts, except they issue home loans exclusively in Denver and/or throughout Colorado.
- Having trouble assessing and analyzing your options for Denver home loans? There’s an increasingly popular option that can help:
- Mortgage Brokers: Mortgage brokers help bridge the gap between borrower and lender by handling the paperwork and securing a home loan on the borrower’s behalf. Mortgage brokers will typically meet with borrowers to discuss their specific needs, then explore the various mortgage lender options out there to find the perfect fit, making Denver home loans more accessible to first-time buyers.