How to get Pre Approved as a First Time Homebuyer!

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Getting Pre approved as a first time homebuyer in Castle Rock or great Denver Colorado can help you understand what you can afford, how much your down payment requirement would be, what closing costs are and will prepare you to begin shopping for a home in your budget. A consultation and Pre approval are free and help you understand where you are and how to get to where you want to go!

 

First, you will complete a secure application and gather your financial documents. You will need to provide various financial documents including W-2s, tax returns, pay stubs, bank statements, and other relevant financial information. After your information has been received and reviewed your mortgage broker/lender will discuss the options available to you and issue a Pre approval letter.

 

The most common 30 year fixed mortgages are conventional, FHA, VA, USDA; many of these options allow zero down payment or down payment assistance. The most popular down payment assistance programs available in Castle Rock and Denver are through CHFA (Colorado Housing and Financing Authority).

 

Once you have a Pre approval letter, you're ready to start buying a home for the first time. The Pre approval letter will show sellers that you're a serious buyer and that you're financially qualified to purchase a home.

 

Here are some additional tips for first time homebuyers:

 

• Find a realtor before you start your home search. Most first time homebuyers don't know that the seller of the property you purchase pays for your realtor!

 

• You may be able to get a low down payment with down payment assistance programs (DPA) or grants. You can also pay for your down payment with a gift from a family member.

 

• Don't make any changes to your employment or obtain more debt. It's important to note that a Pre approval is not a guarantee of a mortgage, and the terms of the Pre-Approval may change if your financial situation changes or if the underwriting requirements change.

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