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Finding a Denver Mortgage Broker When Buying a Home

August 20, 2020
Last updated:
November 24, 2021
Finding a Denver Mortgage Broker When Buying a Home
In This Article

Buying a home in Denver, CO is a big financial investment and is one that you should make after careful consideration. But even after you’ve found the home you want to put an offer on, you’ll probably need some financial help to finance such a big purchase. That’s where a mortgage can come in handy.

Mortgages make it possible for homebuyers to purchase real estate. Without them, most prospective buyers would not be able to come up with the funds needed to buy a home.

That said, a mortgage is a big financial commitment that you would have to make. After all, you will be committed to making your mortgage payments for years until you have fully paid off your loan or until you refinance or sell your property.

That’s why it’s so important to pick the best mortgage program for you, as well as to choose the right Denver mortgage broker to work with.

While you can always apply for a mortgage with your local bank, you’ll be limited to what they have to offer you. Plus, the bank will always look out for themselves, while a mortgage broker’s main priority is you. Not only that, but with a mortgage broker in Denver, you’ll have access to many more options in terms of the mortgage program to choose and the lender you work with.

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Why Work With a Mortgage Broker in Denver?

As we mentioned, you can always head to your local bank or credit union for a home loan when you are ready to buy a home. But there are plenty of reasons why a Denver mortgage broker might be the better option, including the following.

Mortgage Brokers Have a Wide Network of Lenders

When you work with a bank, you are limited to that particular lender and the programs they have. But with a mortgage broker, you’ll have the benefit of working with someone who deals with a large network of lenders. As such, the broker will be able to find the most appropriate lender who can offer you exactly what you want and need. In turn, you’ll have more products to choose from compared to what you’re able to get with your bank.

Mortgage Brokers Work For You

The mortgage specialist you deal with at the bank ultimately works for that financial institution. But a mortgage broker works for you. They are not employed with any one particular lender, and instead, they have your best interests at heart.

Mortgage Brokers Will Negotiate For You

While you can barter with various lenders to try and get the lowest interest rate and better terms, you may have better luck having a professional represent you and do all the negotiating on your behalf. Denver mortgage brokers have plenty of experience in this realm, and as such, you will be more likely to wind up with a better deal if you let them handle this for you.

Mortgage Brokers Do All the Comparison Shopping For You

Shopping around for a home loan with various lenders is very time-consuming and takes a lot of effort. Instead of doing this all yourself, you can let your mortgage broker do it for you, saving you plenty of time and headaches.

Mortgage Brokers Are Seasoned in the Industry

The mortgage industry can be a complex one for those who are not well-versed in this particular niche. Rather than try to make sense of it yourself, you may be better off having an expert help you navigate the process with you to ensure a more successful result.

Loan Limits on Mortgage Amounts

When you apply for a home loan, there is a limit to how much you can borrow based on type of mortgage you’re taking out and the county that you are buying your home in. If the loan amount you apply for exceeds this limit, the loan will be considered a “jumbo loan.”

Both conventional and FHA loans have their own specific loan caps that are adjusted every year to reflect the increase in home prices.

For VA loans, loan limits were eliminated in 2020. Having said that, some borrowers may still have to abide by loan limit if they hold a couple of VA loans or defaulted on a VA loan in the past.

Check out our mortgage loan limit tool for conventional, FHA, and VA loans.

Tips on Finding the Best Denver Mortgage Broker

Here are a few ways to help you find and choose the right Denver mortgage broker to work with.

Get Recommendations From Your Social Circle

One of the best ways to find the right mortgage broker to work with is to simply ask your friends, family, and colleagues. Perhaps one of them has recently worked with a mortgage broker to get a home loan, or maybe they know someone who has. Either way, if they can suggest a mortgage broker to work with, this can help you narrow your choices down.

Speaking with people who have had direct experience with a mortgage broker can provide you with some insight into how the broker was to work with, how quickly the process was completed, and what type of results were had.

You can also check out online reviews of mortgage brokers in Denver from previous clients. Just be sure to get an overall sense of the reviews rather than focusing on just a small handful.

Give Your Credit Score a Boost

There are a few key factors that play an important role in your ability to both secure a mortgage and get the lowest interest rate possible, and your credit score is one of them. A good credit score typically means that you have a financially responsible past and have been diligent with your finances and bill payments. In this case, you would be considered less of a risk for a lender, who will then reward you with a lower interest rate on your mortgage.

On the other hand, a low credit score probably means you’ve had a history of missing payments on bills or have been reckless with applying for too many loan products. Whatever the case may be, a lower score will reduce the odds of mortgage approval and may mean a higher rate if you are approved.

If your score is on the lower end of the spectrum, your job is to take some time to give it a boost before applying for a mortgage. No matter which lender you end up working with, you’d be better off having a higher credit score.

Ask Relevant Questions

When you speak with a mortgage broker in Denver, don’t be afraid to ask detailed questions. The answers that they provide will tell you what type of broker they will be like to work with and if they can provide you with what you need.

Here are a few important questions you may want to have on your list:

  • How much of a down payment do I need?
  • Are there any down payment assistance programs I can apply for?
  • What type of mortgage programs do you offer?
  • What mortgage product would be best for me?
  • What interest rate can I secure?
  • Can I pay down my rate with points?
  • Are there any other fees I will need to pay?
  • What are the closing costs?
  • Should I go with a fixed rate or adjustable rate?
  • How long will it take for my mortgage to go through?

Find Out About All Mortgage Costs From Your Loan Estimate

When you apply for a mortgage, you will be provided with a copy of a Loan Estimate within three days after applying. This document will detail all the costs and fees associated with your particular mortgage to give you a clear idea of what your financial obligations will be. You’ll then have three days to decide if you are OK to move ahead and finalize the transaction.

The types of closing costs that will be outlined in your Loan Estimate include the following:

  • Interest rate
  • Discount point fees
  • Interest rate lock-in fees
  • Lender’s fees
  • Appraisal fees
  • Credit report fees
  • Escrow fees
  • Title insurance fees
  • Origination fees

When you work with a Denver mortgage broker, you’ll have a professional on your side to help you to make sense of everything contained within the Loan Estimate rather than having to make head or tails of it on your own. In turn, this will help ensure that you are making an informed decision about your mortgage.

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Ready to Apply For a Mortgage in Denver?

Do you have questions about mortgages, or are you ready to apply for one? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington serving the entire state, as well as Oregon, Idaho, and Colorado. We offer many mortgage programs to buyers all over the Pacific Northwest. Contact us today with any questions you have about home loans.

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