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Best Ways to Find a Mortgage Company in Denver, CO

Sammamish Mortgage
March 25, 2020
Last updated:
September 10, 2021
Best Ways to Find a Mortgage Company in Denver CO
In This Article

Are you looking to buy a home in Denver and need a mortgage specialist to help? We’ll help you find and choose the best mortgage company in Denver, CO who will have your best interest at heart and will ensure that you secure the right mortgage for you.

Known for its stunning natural landscape and bustling economy, Denver, CO is an attractive place to live, work and play. The capital of Colorado is also known for its wide array of gorgeous 19th-century buildings, making it a beautiful place to live and visit. Considering how attractive this city is, it’s no wonder that housing is in high demand in this city. If you are looking to buy a home in Denver, it’s likely that you may face some competition among others vying for homes in the city.

That’s why it’s highly recommended that you team up with an experienced real estate agent and mortgage company in Denver to ensure a seamless transaction. The professionals that you choose to work with can really make or break your purchase. When you find your dream home in Denver, you don’t want the deal derailed because of incompetence on the part of your lender. Instead, you want to work with a Denver mortgage company with plenty of experience in the industry.

This article will briefly describe the current Denver real estate market to give you a heads up of what the situation is like for you when you finally start shopping for a home. We will also give you an idea of the size of the down payment you may need to front, as well as provide you with helpful tips to navigate the housing market in Denver, CO and find the best mortgage company in the city.

Quick Overview on the Denver Real Estate Market

As of spring 2021, Denver, CO has a median home value of approximately $505,516. This is just a bit higher than the median home price of homes in the state of Colorado, which sits at $449,182. While not exactly cheap, it’s actually a decent price compared to other major markets in the Pacific Northwest. Seattle, for instance, has a median home price of $816,718.

Right now, the real estate market in Denver is hot, with prices having increased 7.8% over the past year. Things are expected to go along much the same lines in terms of home prices in Denver. 

Given this average home value in Denver, you’ll be looking at a down payment of anywhere between $17,693 to $101,103, depending on what percentage of the purchase price you decide to choose. The average down payment size, however, is around 10%, which means you’d be looking at a down payment of about $50,551 based on the current median home price in Denver.

Tip #1: Give Your Credit Score a Boost

Lenders look at a number of factors related to your financial profile when determining whether or not to approve you for a mortgage in Denver. Even if you are approved, your financial health will also dictate the type of interest rate you may be offered. And out of all factors looked at, your credit score is perhaps the most important.

If your credit score is high, you will be considered a strong borrower who will likely be responsible with your mortgage payments based on your past financial activity. But a low credit score has the opposite effect. If your credit score is low, that probably means that you have a history of late or missing payments. The lower your score, the more of a risk you will appear to be to lenders. And that means you could risk getting stuck with a high interest rate (which will make your mortgage more expensive), or may be denied a mortgage altogether.

If your score is on the low side, consider taking steps to improve it, such as:

  • Making timely payments on your current bills
  • Avoiding several loan applications
  • Not spending up to your credit limit on your credit card
  • Making more than minimum payments on your credit card

Related: Check Your Credit Score for Free

Tip #2: Ask the Right Questions

Unfortunately, many borrowers overlook this important aspect when choosing the right mortgage company in Denver. But it’s such an important part of the process. When you speak with mortgage brokers, consider asking a number of pertinent questions. The answers that you get will help you narrow down your search. Ask questions such as:

  • What mortgage rates can you offer?
  • What types of mortgage products do you provide?
  • What are the closing costs for my mortgage?
  • How much will my mortgage payments be?

A reputable mortgage company in Denver will have no problems answering these questions in great detail. If you find that they dodge certain questions or are not complete with their answers, move on.

Live Denver Mortgage Oct, 24, Sun, 2021

Tip #3: Compare Interest Rates

There are many aspects of mortgage products and mortgage companies to look at and compare, but perhaps one of the more important ones is the interest rates. After all, the rate you are offered will have a direct impact on the overall cost of your home loan. Even the difference of one percentage point can mean the difference of tens of thousands of dollars over the life of the mortgage, and sometimes even more.

Luckily, getting rate quotes from various lenders these days is quite easy thanks to the internet. Now you can quickly and easily find rates online by doing a quick Google search. That’s exactly what you should do when choosing a Denver mortgage company.

Once you have all the information you need, print them out and line them up side-by-side so you can better see how each lender’s offerings match up against each other. Comparing interest rates is a crucial component of the assessment process before you make your final choice.

Of course, there are other things that you will want to compare amongst various mortgage companies. For instance, a lower rate offered by one mortgage company may be offset by higher fees, so you will want to watch out for this. The bottom line is that you should carefully analyze the mortgage rates that various lenders are able and willing to offer before you make your choice.

Tip #4: Thoroughly Review Each Option

After you’ve asked some preliminary questions, now is the time to drill down on the questioning to really help narrow down your choices. At this point, you will want to ask questions about things such as:

  • The loan programs they offer
  • Any special assistance programs available
  • In-house loans versus loans that are provided by third-party investors
  • Minimum credit score required
  • Down payment amount required

This list is not exhaustive by any means. But it should give you an idea of the types of things that you will want to know from different mortgage brokers so you are thoroughly informed before you make your final decision about who to work with.

Related: Loan Programs Available For Home Buyers

A Word About Loan Limits

Borrowers should understand loan limits, which are dollar caps placed on a mortgage. For conforming loans, loan limits are caps that are placed on loans that Freddie Mac and Fannie Mae will purchase or guarantee. For FHA loans, loan limits are dollar caps on loans that the FHA backs.

VA loan limits have been eliminated. But some borrowers may still be subject to them if they currently have a couple of VA loans or have defaulted on one in the past.

Loan limits are assigned to every county in the country and usually increase at the start of every year  to reflect the growth in home prices.

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

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Get in Touch With Sammamish Mortgage

This article is meant to help you get a good head start on the process of finding a sound mortgage company in Denver. But to help ensure that you are even more informed when making this important decision, you would be well-advised to speak directly with a professional in this realm.

At Sammamish Mortgage, we are ready to help. With experience dating back to 1992, we know a thing or two about mortgages in Denver, as well as the overall state of Colorado and the remaining Pacific Northwest, including Washington, Oregon, and Idaho. We have various mortgage programs for you to choose from, depending on your financial profile and your specific needs. We encourage you to contact us to speak to one of our mortgage specialists today!

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