Denver Mortgage Company: Finding Your Best Match

March 25, 2020
Last updated:
January 15, 2024
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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 that can help you get preapproved to buy a home in Denver, CO. The right company will have your best interest at heart and will ensure that you secure the right mortgage for your needs.

It’s highly recommended that you team up with an experienced real estate agent and a 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 a home in Denver, you don’t want the deal derailed because of problems on the part of your lender. Instead, you want to work with a Denver mortgage company with plenty of experience in the industry.

Why Buy a Home in Denver, CO?

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.

Let’s take a look at the current Denver real estate market for a heads up of what the situation may be 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 January 2024, Denver, CO has a median home value of approximately $548,452. This is just a bit higher than the median home price of homes in the state of Colorado, which sits at $526,779. 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 $815,865.

Right now, the real estate market in Denver is competitive, though prices have dipped 0.9% over the past year. But home prices in Denver are expected to increase throughout the course of 2024.

Given this average home value in Denver, you’ll be looking at a down payment of anywhere between $19,000 to $121,000 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 just over $54,845 based on the current median home price in Denver.

4 Tips for Finding a Denver Mortgage Company

The best Denver mortgage company will want clients with all of their ducks in a row. Do you groundwork, both in regard to getting yourself ready to buy a home and in investigating mortgage companies to find your match.

Tip #1: Give Your Credit Score a Makeover

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 Many 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 Rates

Tip #3: View 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: Compare Options

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

Understand 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.

Get an Instant Mortgage Rate Quote Today

Get More Info on Denver Mortgages

There’s so much to know about mortgages in Denver, CO, and the mortgage companies that offer them. At Sammamish Mortgage, we can provide you with all the information required about home loans without the need to do any leg work yourself. We’ve been helping borrowers all over Washington, Idaho, Colorado, and Oregon apply for mortgages since 1992, and we’d love to help you too. We offer plenty of mortgage programs with flexible qualification criteria, and we would love to speak to you about how we can help. Contact us today to get the info you need about home loans needed to buy a home in Denver!

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