Denver’s Best Mortgage Lenders | The bank rate

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If you want to buy a new home in Denver, you will need to follow one key strategy: act fast. Homes in Denver are only on the market for an average of six days, according to real estate broker Redfin. These sellers don’t just accept the first offer they receive – many homes receive multiple offers.

While this insane level of competition can be frustrating in your search for a home in The Mile High City, fall and winter may be a better time to enter the market. Before you start shopping for a home, however, shop around and get pre-approved for a mortgage. Here are some of the best mortgage lenders to consider.


Methodology

To determine the best mortgage lenders by city, Bankrate evaluated lenders based on several criteria, including affordability (APR and fees); timeliness (approval and closing times); and experience (including customer service). In general, the best mortgage lenders have a high Bankrate Score and high ratings from borrowers.


The Best Mortgage Lenders in Denver

Better.com

  • Good if: You put 20 percent down

If you have a strong credit score (700 or higher) and plan to put down a 20% down payment, Better.com might be better than any other choice for a mortgage in Denver. Some of the perks: There are no lender fees, you can lock in a low interest rate, and if you’re willing to shell out a few extra bucks to pay up discount points, you can save even more. more. Better.com’s borrowing experience is also designed for tech savvy shoppers, so you’ll be doing everything online and being able to text, call, or email to speak with customer service at any time. time, day and night.

Advantages

  • No commissions or lender fees
  • 24/7 customer service
  • Also a great choice if refinancing your mortgage in Denver

The inconvenients

  • Higher credit score requirements
  • No VA or USDA loans

First Bank in the Midwest

  • Good if: You make a small deposit

Don’t let the name fool you. While First Midwest Bank is headquartered in the center of the country, the lender assists homebuyers across the country, including Colorado. The bank has programs specifically designed for first-time home buyers and those who need help with down payment and closing costs. If you qualify as a low income, low credit borrower (you still need a 620), you can only deposit 3% as long as you take a training course.

Advantages

  • Down payment assistance programs and closing costs
  • Special offers without deposit for doctors, residents and dentists

The inconvenients

  • Invoice for processing and subscription fees of $ 750
  • Mortgage rates are not advertised on the website

AmeriSave Mortgage Company

  • Good if: Looking for an FHA loan

The “back up” in AmeriSave’s name rings true, especially if you are looking for an FHA loan. The Atlanta-based mortgage lender offers a range of options for paying points upfront in exchange for a lower interest rate. If you’re looking to avoid that large sum of money on closing day, you’re in luck too – you can opt for a higher interest rate and just pay the lender’s $ 500 application fee. AmeriSave requires a minimum credit score of 600 for an FHA loan, but if you are looking to borrow more than $ 700,000, you will need at least a 640.

Advantages

  • Transparent fee structure of $ 500
  • Better Business Bureau A + Rating

The inconvenients

  • Does not offer a specific program for the purchase of a first home
  • Need to share personal information to get an idea of ​​the mortgage rates that apply to you

First direct mortgage

  • Good if: You are looking for an investment property

Want to take advantage of Denver’s continuing population boom? Instead of getting a mortgage to live there, you might want to get a mortgage to rent it out to monthly tenants or to out-of-town visitors looking to experience the hustle and bustle of the city. If so, you might benefit from working with First Mortgage Direct, which offers investment home loans. You’ll need strong credit (likely a credit score of 700 or higher) and the ability to make a large down payment of at least 15%, but your money now will pay dividends long into the future.

Advantages

  • No lender fees
  • No need to pay a 20% deposit

The inconvenients

  • Does not advertise pricing on the website and the website is quite limited in terms of features

Denver Local Mortgage Lenders

Sometimes it feels good to step away from the screen and talk with a real human face-to-face. If you want to find a mortgage lender with an office you can visit in Mile High City, consider these three great options.

First Bank

  • Good if: You want to build a new house

The housing supply is limited in Denver, which might make you think about building a new home instead of buying an existing one. FirstBank, which is headquartered in Lakewood and has branches in the Denver metro area, offers a wide range of loans to help you build your dream home, including home equity loans, interest-only construction loans and construction loans to permanent. you can avoid paying two rounds of closing costs. You may also feel good about working with a bank that makes a difference in Denver: It has raised over $ 217 million for nonprofits in Colorado.

First mortgage loan

  • Good if: You are eligible for a VA loan

Front Range Mortgage is a mortgage broker, which means they can help you compare multiple lender options based on your credit criteria and needs. It has access to many loan programs, but it’s an especially good choice if you’re a veteran, current service member, or eligible family member who can get a VA loan: about 75% of clients from Front Range are VA home buyers.

Caisse populaire d’Élévations

  • Good if: You want to avoid paying mortgage insurance or closing costs

Based in Boulder, Elevations Credit Union offers a wide range of mortgage programs to more than 170,000 members. The most notable options include a no-closing cost option (you’ll pay a higher interest rate, but the upfront expenses will seem more manageable) and 80/10/10 combo loans that help you bypass mortgage insurance. with only 10% deposit.

What you need to know to get a mortgage in Denver

How much will you need to borrow to buy a house in Denver? The median selling price was $ 550,000 in August 2021, according to Redfin, but every neighborhood is different, and Denver has made great strides in expanding its light rail service to help commuters in recent years. In general, it’s best to balance where you need to be on a regular basis (an office or near a school for your kids, for example) with where you can afford to live.

Plus, think about the future of your property in the years to come. The Denver Metro Association of Realtors (DMAR) September 2021 market report cited key growth points over the next 10 years: Regis, Chaffee Park, Sunnyside and West Colfax. Maybe now is the time to be a forerunner to the city’s next hot spot.

If you feel overwhelmed seeing the properties you want to get cash offers or disappear from the market as soon as they are listed, broaden your search to some of the homes and condos that are not in the “hot” category. Consider this advice from Andrew Abrams, real estate agent in Denver and chair of the DMAR Market Trends Committee: “If you are a buyer in a unique situation, have less money to put aside or need of a longer close, ”Abrams said in the DMAR report,“ you may want to look at properties that have been on the market for more than a week ”.

Before you start looking, make sure you get pre-approved for a mortgage to give your offer the credibility it needs in that seller’s market, and follow these tips to make your offer stand out.

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