Buying A Home
Download my Colorado Homebuyer Guide!
This will give you most of the tools you need to start your home-buying journey!
“There’s nothing half so pleasant as coming home again. Home is where love resides, memories are created, friends and family belong, and laughter never ends. Home is where you feel at home and are treated well.”
Check your credit.
Checking your fico score will be the most beneficial and closest indicator of what a lender will see and pull when you go and apply for a loan. 680 is an ideal credit score to have for the best loan options, but you can get a mortgage with a score as low as 580.
It is best to meet with me to get details on your unique situation.
Debt to income ratio
Your debt-to-income ratio (DTI) shows the percentage of your monthly gross income that goes toward debt repayment. Mortgage lenders use DTI to see how big a house payment you could afford.
Typically, lenders prefer a DTI ratio that’s no higher than 36% to 43%, depending on the mortgage program.
Save a downpayment
Conventional loans require at least 3% to 5% down, and an FHA loan will need at least 3.5% down.
You’re also responsible for closing costs — which are roughly 2% to 5% of the loan. Right now buyers are in a great position because most sellers are offering to pay for a buyers closing costs.
You can use gift funds, take a loan on your life insurance or 401k, there are also CHFA and Metro DPA that are available for downpayment assistance.
Determine your budget
Determine your montly budget, don’t try and ballpark a home amount. Figure out what you can afford monthly and keep that in mind as you talk with a lender.
I can connect you with lenders who can help you build a plan around your budget.