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Tips on Finding a Local Mortgage Lender in Denver

Sammamish Mortgage
October 20, 2020
Last updated:
June 25, 2021
Tips on Finding a Local Mortgage Lender in Denver
In This Article

There is a long list of tips and suggestions for finding local mortgage lenders, especially online. But rather than getting bogged down with 20+ tips, why not cut to the chase? Here are some tips for finding a local mortgage lender in Denver.

The Denver real estate market has been going strong for years. Moreover, despite the ongoing pandemic, the metro Denver housing market has exceeded expectations and broken records.

Though there has been a shift, making the real estate market here a buyer’s market, you still need the right assistance to make your homeownership dreams come true. Thus, when it comes to buying a home and applying for a home loan in Denver, you need to be prepared, and the best way to do that is by working with a local mortgage lender.

In order to start looking for your trusted lender team, you will need to familiarize yourself with the entire lending process, which you can do online. Online lending has made the home buying process more convenient and can reduce closing times by a minimum of  2 weeks.

Moreover, online lending gives you easy access to verifiable information and the ability to compare Lenders’ programs, fees, and interest rates. That said, there are many online lenders. Thus, it is important to choose a company that gives you the support and service you need.

You should start your search for a Denver mortgage lender early, before house hunting. Here are a few tips for finding a local mortgage lender in Denver to assist you in this.

1. Understand Your Purpose

On the surface, the goal may seem obvious; you want to purchase a new home in the city of Denver. But what you should be asking yourself is why do you want to buy a home right now? For instance, if you are a first-time homebuyer, your goal or purpose for wanting a new home may be more of a rite of passage.

Yet, someone who is looking for their second home or a vacation house in Denver will likely have a different main goal. Likewise, empty nesters interested in downsizing or a growing family looking for more space are all looking for something different. Thus, it helps to add some focus by figuring out what you hope to accomplish by purchasing a new house. Ultimately, the answer to this question will determine your path.

2. Double Check the Report

Access your credit report, so you can double-check your score and devise a plan of attack to keep your score above average. Generally, people who are looking for a local mortgage lender avoid applying for additional lines of credit, or unnecessarily checking their credit report, as this lowers your credit score.

That said, you should also make sure that credit card balances are well below their limits, and if possible, paid off each month. Similarly, if you have medical collections, now is the time to pay them in full as most Denver lenders will require you to do so.  And if you find any errors on your credit report, make sure you speak with the reporting agencies and allow at least 30 days for mistakes to be fixed.

3. Gather The Necessary Documents

Before you can officially begin lender shopping and applying for a mortgage loan in Denver, make sure you have all of your paperwork in one place. Doing so prior to starting your search will make for a much more seamless process. The most important documents you need are tax returns, a copy of your credit report, bank, asset statements, pay stubs, photo ID, and detailed renting or purchasing history.

4. Which Mortgage Type is Right

Once you have a better understanding of what a new home means to you, then the next step to finding a local mortgage lender in Denver is to figure out what type of loan you need or what would work best for your particular situation. That said, there are many loans or different mortgage programs to choose from, and several factors that play a part in your decision.

Homebuyers most commonly take out a conventional or jumbo loan in Denver. FHA loans are also popular with first-time buyers. In fact, first-time buyers may have more financing options than they originally thought, thanks to Colorado and national first-time buyers programs.  In general, the Colorado House and Finance Agency (CHFA) is currently offering various homebuyer programs that you should keep in mind regardless of where you are at in your homeownership journey.

Once you find out what you are looking for, you can focus your lender search on Denver mortgage lenders that specialize in those specific loan or mortgage types. While searching for the right Denver lender, you will quickly find that some local financial institutions favor certain loan types, while others try to ensure that regardless of the loan type, every future homeowner was provided expert service.

Live Denver Mortgage Jul, 27, Tue, 2021

5. When in Doubt Ask Around

Yet another way to locate the right Denver lender for your particular home needs is to ask around. There is always someone who knows a guy. So, make sure you talk to friends, family, or even your Realtor. People are generally willing to tell you right away who they have had a good experience with—all you have to do is ask.

Moreover, if you are new to the residential real estate market, then don’t be afraid to ask your family and friends what worked well for them. Of course, everyone has a unique financial situation and individual personalities, but a referral from someone you know can go a long way.

Plus, you can check out online reviews for each suggested lender. That said, not every review is accurate, but you should be able to get a good feel for the individual lender and their support staff. Note, if there is a negative review that concerns you, then you should speak directly with your lender for an explanation. You can also ask for lender-specific fees & estimated monthly mortgage payments while you are at it.

6. Compare, Compare, and Compare Some More

Speaking of online, people are buying a home and searching for a mortgage online no more than ever before. An added bonus with completing most of the home buying process online is that it also gives you a chance to compare mortgage rates and fees with ease as lenders openly post real-time rates. Ultimately, you want to work with a lender that is transparent with their rates and helps ensure they are competitive. This will eliminate big surprises when it comes time to lock a rate.

7. Evaluate Lenders Based On The Criteria You Identified As Most Important

After you’ve completed all six of the previous steps, you should start looking at local Denver lenders. By saving this step until the end, you ensure you’re much more educated on the process. This protects you from making mistakes or misinterpreting information and opportunities that can be costly.

During this step, find all the possible local lenders that meet your criteria and start comparing them. In addition to comparing rates and available programs, look at lenders’ terms, conditions, overall lender reputation, and anything else unique to your home-buying situation.

Loan Limits

Loan which are dollar caps placed on mortgages. Any loan that exceeds this loan limit means the mortgage is a “jumbo loan”. For conforming loans, loan limits are caps that are placed on loans that are backed by Freddie Mac and Fannie Mae. And for FHA loans, loan limits are dollar caps on loans backed by the FHA.

For VA loans, loan limits were eliminated in 2020. But some borrowers may still be subject to them if currently hold a couple of VA loans or have defaulted on a VA loan 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 increase in home prices.

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

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Why Choose Sammamish Mortgage?

At Sammamish Mortgage, we strive for a personalized experience for each mortgage applicant. That’s why we employ a full staff of experienced mortgage loan officers, transaction coordinators, processors, and funders.

Mortgage loan processing is all we do, so every member of our team is highly experienced. If your loan officer is out for the day, or it’s the weekend, and you need to talk to someone about your loan, someone will be available to you.

Sammamish Mortgage has been in business since 1992 and has assisted many homebuyers in the Pacific Northwest. If you are looking for mortgage financing in Denver, we can help. Sammamish Mortgage offers mortgage programs for Capital Hill, Uptown, Highlands, and other amazing Denver neighborhoods.

Contact us if you have any mortgage-related questions or concerns. If you are ready to move forward, you can view rates, obtain a customized instant rate quote, or apply instantly from our website.

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