Denver Mortgage Lender: 15 Tips for Finding the Right Lender

October 20, 2020
Last updated:
January 11, 2024
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Are you looking for a Denver mortgage lender? 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. 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 Denver mortgage lender team, you will need to familiarize yourself with the entire lending process, which you can do online. Mortgage lenders who have taken their process online have made the home buying process more convenient and can reduce closing times to a minimum

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 lenders offering online services. Thus, it is important to choose a company that gives you the support and service you need.

15 Tips for Choosing the Right Denver Mortgage Lender

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. Identify your main goal.

    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. Decide what type of mortgage you need

    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 loan 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.

  3. Know your credit score

    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 score, and your credit score affects your mortgage interest rate.

  4. Improve your credit score

    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. 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.

  5. Search for reviews

    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 and estimated monthly mortgage payments while you are at it.

  6. Demand transparency

    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. Demand to know what the best option for you is, not just whatever loan the institution is currently trying to build up in their portfolio.

  7. Familiarize yourself with lending rates

    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.

  8. Seek a referral

    A good way to locate the right Denver lender for your particular home needs is to ask around. There is always someone who knows someone. So, make sure you talk to friends, family, or even your real estate agent. 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.

  9. Use your common sense

    Be cognizant of the fact that online rate offers are usually based on a best case scenario — a lender with perfect credit and a massive down payment. Make sure the rate you’re offered is tailored to your specific situation to avoid unwelcome surprises.

  10. Gather your paperwork

    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.

  11. Rein in your spending habits

    Now is the time to tighten the purse strings and lower your spending to get your debt-to-income ratio under control and present yourself to lenders in the best possible light.

  12. Look at a lot of different 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.

  13. Ask about the fees

    See something in the loan estimate you don’t understand, or that seems to be padding, like “loan origination fees?” Ask your lender to explain these fees and if there is a way to negotiate them.

  14. Check for additional costs

    Include PMI (private mortgage insurance) in your monthly cost calculation if your down payment is less than 20%. DOn’t forget those pesky HOA (homeowners association) fees that may apply if you buy into a community with an HOA.

  15. Push for expertise and customer service

    Look at local Denver 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. Finally, get a feel for their customer service by requesting assistance with a pre-approval.

Denver Mortgage Rates

Loan Limit Basics

If you take out a home loan that is higher than a certain limit, your mortgage will be considered a “jumbo loan.” That’s because of loan limits, which are dollar limits placed on mortgages. 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

Why Choose Sammamish Mortgage?

Sammamish Mortgage is a local mortgage loan company that has been serving clients since 1992. We support borrowers all across the Pacific Northwest, including Washington, California, Oregon, Idaho, and Colorado. We are proud to offer a wide variety of mortgage programs and products with flexible qualification criteria. Please contact us if you have any questions or are ready to apply for a home loan.

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