If you’ve been around the Colorado housing market for a while, or even if you are new here, you will find that the operative word is BOOMING. The housing market along the front range has been nothing short of spectacular for years now due to our lifestyle, a strong economy, low interest rates and our incredible opportunities here.
According to Rice Kinder Institute for Urban Research, the Denver metro area was one of the 5 fastest growing cities in the United States in 2019. Add to that U.S. News and World Report’s “Best Places to Live in 2019” naming Denver and Colorado Springs behind Boulder as the number 1 spot and you have an idea about our growth. Therefore, we suggest that everyone anticipating house shopping here do so with a mortgage prequalification firmly in hand.
Getting Prequalified is Crucial in a Hot Market
Getting prequalified for a mortgage in a hot housing market is crucial. Not only do you need to know what you can afford but a preapproval can benefit you when you’re out there ready to make an offer on your dream home. Taking the time to get prequalified for a mortgage can simply give you a great advantage over other potential buyers when we’re in a market when listings can go under contract within 24 hours.
Setting Your Expectations
Shopping for a home can be one of the most stressful things you can do. The more prepared you are, the less stress. Going to look at homes that you can’t qualify for is not only a waste of your time, but it can be frustrating and disheartening to all involved. With the help of a prequalification, you understand exactly what price home you can afford to buy and set realistic expectations.
Alerts You to Problems
Although every lender and mortgage product are different, they will all review certain information. Your income, assets, debts and credit score will be considered before any lender approves you for a loan. And a prequalification is a better time to find some potential problems that may prevent you from being approved for a loan. This may mean that you need to resolve some issues on your credit report or come up with a larger down payment. This is the time to get issues cleared up before you go under contract for a home.
It Tells the Seller You’re Real
Your real estate agent knows them. They are the looky loos. Going to look at homes for sale is a fun pastime for them but they have no real intention of buying. When you go looking for a home with prequalification in hand, it tells everyone you are ready to buy and that you’re serious. This instills a sense of confidence, especially in a market such as ours. A seller will take the most bulletproof offer they can get. A mortgage prequalification makes your offer all that more appealing.
Trust an Experienced Professional
At Front Range Mortgage, we’d be glad to sit down with you and discuss your mortgage needs and what type of lender would be best for you. We are Colorado mortgage brokers with over 24 years of combined experience in Colorado and have access to multiple different types of loan programs. Prequalification is easy and if there are some things that need your attention, we can help you get them resolved. Call our Denver office today at (303) 500-1900.