Guideline Updates

Colorado Mortgage Group can now offer $679,650 Conventional High-Balance loan program

On March 1st, 2018, Colorado Mortgage Group will offer conventional high-balance loans in Colorado, providing access to a more cost-effective loan product in areas that previously lacked high-balance loans.

Currently, only 7% of U.S. counties (220 out of 3,234) have access to loan amounts over $453,100, through FHFA conforming loan limits, with the most expensive areas going up to $679,650. For the rest of the country, the only option is a true jumbo loan, which comes with higher fees, additional guideline requirements and stringent overlays.

We are filling this gap by offering a conventional high-balance loan program that covers every county in Colorado. The program gives consumers access to a $679,650 loan amount, competitive rates, a streamlined underwriting process and the accessibility of an $849,570 purchase price with a 20% down payment.

With lower rates, more flexible guidelines and fewer requirements than jumbo, Conventional High Balance is popular with many lenders.

Guidelines of this High-Balance Colorado Loan include:

  • 680 minimum FICO
  • 43% debt-to-income
  • 80% loan-to-value
  • Primary and second homes
  • Average turnaround time of 15 days or less from submission to closing

Some areas of Colorado have an average purchase price well above the Conforming loan limits and High-Balance Loan Limits. Jumbo loans often have more rigorous requirements than conventional loan limits. This is a great opportunity for home-buyers who might otherwise not be able to qualify for a home loan.

2018 VA Loan Limits in Colorado

VA does not set a cap on how much you can borrow to finance your home. However, there are limits on the amount of liability VA can assume, which usually affects the amount of money an institution will lend you. The loan limits are the amount a qualified Veteran with full entitlement may be able to borrow without making a downpayment. These loan limits vary by county, since the value of a house depends in part on its location.

The basic entitlement available to each eligible Veteran is $36,000. Lenders will generally loan up to 4 times a Veteran’s available entitlement without a down payment, provided the Veteran is income and credit qualified and the property appraises for the asking price.

VA county loan limit:

  • VA’s 2018 Loan Limits are the same as the Federal Housing Finance Agency’s limits
County Name 5-Digit County Code 2018 Loan Limit
1 Unit
2018 Loan Limit
2 Unit
2018 Loan Limit
3 Unit
2018 Loan Limit
4 Unit
ADAMS 08001 $529,000 $677,200 $818,600 $1,017,300
ALAMOSA 08003 $453,100 $580,150 $701,250 $871,450
ARAPAHOE 08005 $529,000 $677,200 $818,600 $1,017,300
ARCHULETA 08007 $453,100 $580,150 $701,250 $871,450
BACA 08009 $453,100 $580,150 $701,250 $871,450
BENT 08011 $453,100 $580,150 $701,250 $871,450
BOULDER 08013 $578,450 $740,500 $895,100 $1,112,400
BROOMFIELD 08014 $529,000 $677,200 $818,600 $1,017,300
CHAFFEE 08015 $453,100 $580,150 $701,250 $871,450
CHEYENNE 08017 $453,100 $580,150 $701,250 $871,450
CLEAR CREEK 08019 $529,000 $677,200 $818,600 $1,017,300
CONEJOS 08021 $453,100 $580,150 $701,250 $871,450
COSTILLA 08023 $453,100 $580,150 $701,250 $871,450
CROWLEY 08025 $453,100 $580,150 $701,250 $871,450
CUSTER 08027 $453,100 $580,150 $701,250 $871,450
DELTA 08029 $453,100 $580,150 $701,250 $871,450
DENVER 08031 $529,000 $677,200 $818,600 $1,017,300
DOLORES 08033 $453,100 $580,150 $701,250 $871,450
DOUGLAS 08035 $529,000 $677,200 $818,600 $1,017,300
EAGLE 08037 $636,150 $814,500 $984,525 $1,223,475
ELBERT 08039 $529,000 $677,200 $818,600 $1,017,300
EL PASO 08041 $453,100 $580,150 $701,250 $871,450
FREMONT 08043 $453,100 $580,150 $701,250 $871,450
GARFIELD 08045 $679,650 $870,225 $1,051,875 $1,307,175
GILPIN 08047 $529,000 $677,200 $818,600 $1,017,300
GRAND 08049 $453,100 $580,150 $701,250 $871,450
GUNNISON 08051 $453,100 $580,150 $701,250 $871,450
HINSDALE 08053 $453,100 $580,150 $701,250 $871,450
HUERFANO 08055 $453,100 $580,150 $701,250 $871,450
JACKSON 08057 $453,100 $580,150 $701,250 $871,450
JEFFERSON 08059 $529,000 $677,200 $818,600 $1,017,300
KIOWA 08061 $453,100 $580,150 $701,250 $871,450
KIT CARSON 08063 $453,100 $580,150 $701,250 $871,450
LAKE 08065 $625,500 $800,775 $967,950 $1,202,925
LA PLATA 08067 $453,100 $580,150 $701,250 $871,450
LARIMER 08069 $453,100 $580,150 $701,250 $871,450
LAS ANIMAS 08071 $453,100 $580,150 $701,250 $871,450
LINCOLN 08073 $453,100 $580,150 $701,250 $871,450
LOGAN 08075 $453,100 $580,150 $701,250 $871,450
MESA 08077 $453,100 $580,150 $701,250 $871,450
MINERAL 08079 $453,100 $580,150 $701,250 $871,450
MOFFAT 08081 $453,100 $580,150 $701,250 $871,450
MONTEZUMA 08083 $453,100 $580,150 $701,250 $871,450
MONTROSE 08085 $453,100 $580,150 $701,250 $871,450
MORGAN 08087 $453,100 $580,150 $701,250 $871,450
OTERO 08089 $453,100 $580,150 $701,250 $871,450
OURAY 08091 $453,100 $580,150 $701,250 $871,450
PARK 08093 $529,000 $677,200 $818,600 $1,017,300
PHILLIPS 08095 $453,100 $580,150 $701,250 $871,450
PITKIN 08097 $679,650 $870,225 $1,051,875 $1,307,175
PROWERS 08099 $453,100 $580,150 $701,250 $871,450
PUEBLO 08101 $453,100 $580,150 $701,250 $871,450
RIO BLANCO 08103 $453,100 $580,150 $701,250 $871,450
RIO GRANDE 08105 $453,100 $580,150 $701,250 $871,450
ROUTT 08107 $625,500 $800,775 $967,950 $1,202,925
SAGUACHE 08109 $453,100 $580,150 $701,250 $871,450
SAN JUAN 08111 $453,100 $580,150 $701,250 $871,450
SAN MIGUEL 08113 $625,500 $800,775 $967,950 $1,202,925
SEDGWICK 08115 $453,100 $580,150 $701,250 $871,450
SUMMIT 08117 $625,500 $800,775 $967,950 $1,202,925
TELLER 08119 $453,100 $580,150 $701,250 $871,450
WASHINGTON 08121 $453,100 $580,150 $701,250 $871,450
WELD 08123 $453,100 $580,150 $701,250 $871,450
YUMA 08125 $453,100 $580,150 $701,250 $871,450

CHFA Down Payment Assistant Programs

What is CHFA?

CHFA’s mission is to strengthen affordable housing and economic development across the state. They offer many financial resources to strengthen homeownership, affordable rental housing, and businesses. They also offer education classes and technical assistance to help borrowers succeed.

CHFA has invested more than $10 billion in Colorado’s economy. Their resources have helped:

  • 84,472 Colorado homebuyers achieve homeownership;
  • 97,761 households attend homebuyer education classes held statewide;
  • 58,628 affordable rental housing units be developed or preserved; and
  • 3,670 business access capital to support 49,570 jobs.

Home Finance Programs:

borrower qualifications vary by program; however there are certain ones that apply in all or most instances:

  • No first time homebuyer requirements on most loan programs
  • CHFA-sponsored homebuyer education required with purchase programs and CHFA Mortgage Credit Certificates (CHFA MCCs)
  • $1,000 minimum borrower contribution required (may be a gift) on most loan programs

You will find below a brief overview of CHFA programs, along with key benefits of each to help you determine which might be best for you.


home finance program comparison chart

Take the next step towards your future with confidence by financing your home with Colorado Housing and Finance Authority (CHFA). Need Help feel free to call us with any question at (303)-444-5251 or email at
couple colorado photo

Down Payment Assistance Grant-CHFA

CHFA Grant Program

The number one hurtle first time home buyers constantly struggle with is the traditional down payment needed to start your investment.  If having a down payment has been a source of frustration in the past, you are not alone.  CHFA has a down payment assistant grant created to help Colorado residents become home-owners.  CHFA’s new grant is available to either first-time or non-first-time homebuyers under most of its 30-year, fixed rate, first mortgage loan programs. Borrowers who meet income requirements, have a mid-credit score of 620 or higher, contribute $1,000 toward the transaction, and complete a CHFA homebuyer education class (online or in-person) prior to loan closing may be eligible. 

CHFA has been offering down payment assistance in various forms since 1991, and this is the first time in more than 10 years CHFA has offered a grant as part of its loan programs for homebuyers. The CHFA grant program may be used toward the down payment, closing costs and/or other fees. ​ Below is the details to get started moving forward today.

How much Assistance can I get?

You can get a grant for up to 3 percent of your first mortgage loan to help cover some of your down payment and/or closing costs.  That would mean up to a $5,100 for a $170,000 for your first mortgage loan.  Another benefit of this program is you never have to pay it back.  With the CHFA DPA grant, you can have the freedom of owning your own house and not stress about ever paying it back.  

 How can this Grant be used? mountain home colorado photo

  • Save money up-front
    Use the CHFA DPA Grant to help with your down payment, closing costs, and/or prepaids.
  • Keep your savings
    Use the CHFA DPA Grant and keep more of your money in savings.​
  • ​Improve your new home
    Use the CHFA DPA Grant to leave more of your money available to make your home your own​.​

How To Qualify:

  • Your total household income and the purchase price must be within the limits. Income Limits can be found at:
  • You must complete a CHFA homebuyer education class (online or in-person) prior to loan closing
  • You must contribute a minimum of $1,000 toward the purchase of a home
  • You must have a mid-credit score of 620 or higher

Looking to the Future

Want help or advice to start moving forward into a new home, we would love to help at Colorado Mortgage Group. Call today at (303) 444-5251 or email us at

New FHA County Loan Limits for 2016

Loan Limits in the State of Colorado

What is a Loan limit? Loan limits have a definition very closely related to their name. A loan limit is the maximum allowable loan size for a mortgage. Loans for amounts above loan limits cannot be approved. Mortgage loan limits can vary by product and by ZIP code. An example would be the particular loan limits set for FHA Loans that differ from Fannie Mae or Freddie Mac.  A VA which is managed by the Department of Veteran Affairs also has a different set of specific limits.  For 2016, the limit for all counties is $417,000 for single-unit homes.  This is the set default mortgage loan limit nationwide.

The Federal Housing Administration released its maximum mortgage limits for 2016 on Wednesday December 9th 2015.  Limits will increase in 188 counties due to the changes in home prices, and no counties will have decreasing loan limits.

Below are are the Colorado limits for 2016 and the previous years limits:

  • Adams County, Colorado 2016 Loan Limit: $458,850 (2015: $424,350)
  • Arapahoe County, Colorado 2016 Loan Limit: $458,850 (2015: $424,350)
  • Boulder County, Colorado 2016 Loan Limit: $474,950 (2015: $456,550)
  • Broomfield County, Colorado 2016 Loan Limit: $458,850 (2015: $424,350)
  • Clear Creek County, Colorado 2016 Loan Limit: $458,850 (2015: $424,350)
  • Denver County, Colorado 2016 Loan Limit: $458,850 (2015: $424,350)
  • Douglas County, Colorado 2016 Loan Limit: $458,850 (2015: $424,350)
  • Elbert County, Colorado 2016 Loan Limit: $458,850 (2015: $424,350)
  • Gilpin County, Colorado 2016 Loan Limit: $458,850 (2015: $424,350)
  • Jefferson County, Colorado 2016 Loan Limit: $458,850 (2015: $424,350)
  • Park County, Colorado 2016 Loan Limit: $458,850 (2015: $424,350)

What Are My Options As A Borrower?

Want help choosing a loan program listed below are the general details for conventional, FHA, and VA programs.


  • No Overlays
  • PIW’s accepted
  • 97% LTV – Fixed
  • 90% LTV – 5-7 year ARM’s
  • 620 Min FICO
  • Fannie Mae & Freddie Mac
  • LPMI Available
  • DU Refi Plus and Open Access


  • Make Sense Underwriting
  • FICO’s down to 580
  • Streamlines to 580 (mortgage only credit)
  • Extra .5% for purchase above 680
  • Extra .5% for streamlines


  • Make Sense Underwriting
  • 100% Cash Out
  • FICO’s down to 580
  • Streamlines to 580
  • Extra .5% for purchases above 680
  • Extra .5% for streamlines

Freddie Mac Home Possible Advantage Mortgages

Program Overview:

Are you currently looking for a new house, or have you been frustrated with the process in the past? Freddie Mac Home Possible advantage mortgages offer outstanding flexibility and options to help meet your needs. With Home Possible, you’ll capitalize on opportunities to meet the home financing needs of low- and moderate-income borrowers looking for low down payments and flexible sources of funds. Freddie Mac Home Possible AdvantageSM offers more flexibility for maximum financing. This offering adopts the responsible and affordable flexibility of Home Possible, but with additional requirements. Below are some of the key features of the Home Possible Advantage Mortgage.

Feature Home Possible Home Possible Advantage
Property Types
  • 1- to 4-unit primary residences
  • Condos
  • PUD
  • Manufactured homes (with restrictions)
  • 1-unit primary residences
  • Condos
  • PUDs
Eligible Mortgage Products
  • Fixed-rate mortgages.
  • 7/1 and 10/1 ARMs if secured by a 1- or 2-unit primary residence.
  • 5/1 ARMs if secured by a 1- or 2-unit primary residence other than a manufactured home.
  • Construction Conversion and Renovation Mortgages.
  • Mortgages with an RHS Leveraged Second.
  • Fixed-rate mortgages.
  • Construction Conversion and Renovation Mortgages.
Maximum LTV/TLTV Ratios
  • For Home Possible: LTV/TLTV/HTLTV ratio of 95 percent.
  • For Home Possible Advantage: 97 percent LTV/ 105 percent TLTV.
Eligibility/Underwriting A Home Possible mortgage may be submitted to Loan Prospector® or may be a manually underwritten mortgage. See Guide Section A34.8 for credit underwriting requirements.
Requirements for Minimum Borrower Contribution and Sources of funds See Guide Section A34.10 for requirements on minimum contributions from borrower personal funds, reserves and permitted sources of funds.
Homebuyer Education See Guide Section 34.12 for homeownership education and landlord education requirements related to:

  • Borrower(s) who are all first-time homebuyers.
  • Restrictions on parties that may provide the homeownership education.
  • Homeownership education documentation  that must be retained in the mortgage file.
  • Acceptable types of homeownership education, including Freddie Mac’s CreditSmart®
  • Borrower disclosure requirements.
  • Landlord education (2- to 4-unit primary residences) requirements for purchase transactions.
Delivery Fees See Guide Exhibit 19 for:

  • Special postsettlement delivery fees are applicable to Home Possible mortgages and Home Possible Advantage mortgages.
  • Delivery fee exclusions.
Special Delivery Requirements See Guide Section 17.18(b) for special delivery instructions for Home Possible mortgages.
Single-Family Seller/Servicer Guide Refer to Guide Chapter A34.

colorado house photo

Key Features and Flexibility

  •  Fixed-rate mortgages with a term of up to 30 years.
  •  Eligible properties: one-unit properties, condominiums, and planned united developments. (Manufactured homes are ineligible.)
  •  All borrowers must occupy the property as their primary residence.
  •  Maximum loan-to-value (LTV) is 97% and maximum total loan-to-value (TLTV) is 105%.
  •  Reduced mortgage insurance coverage (18%).
  •  Temporary Subsidy Buydown plans lower initial monthly payments.
  •  No reserves required.
  •  More eligible sources of funds for down payment and closing costs.
  •  Eligible annual income up to 100% of Area Median Income or higher in select counties and no income limit in underserved areas.
  • May be submitted through Loan Prospector® or manually underwritten


  • No minimum borrower contribution from borrower personal funds.
  • Gift from related persons and other sources of funds permitted for down payment and closing costs.
  • Lower monthly payments from reduced mortgage insurance coverage levels.
  • Lower monthly payments means less income needed to qualify.
  • No minimum LTV limit.
  • No reserves required, lowering cash needed to close.
  • Flexible closing cost funding options.

Home Possible Advantage or FHA?

Comparison of Home Possible Advantage with monthly PMI vs. FHA using $150,000 sales price.

30-year fixed rate mortgage scenario Home Possible Advantage
18% Monthly MI Coverage
4.375% Note Rate**, 97% LTV
FICO Ranges 680-719 / 720-759
FHA No FICO Cuts 3.750% Note Rate* 96.5% LTV
Base Loan Amount $145,500 $144,750
Upfront MIP Rate (%) 0 1.75%
Upfront MIP Cost ($) 0 $2,533
Total Loan Amount $145,500 $147,283
Down Payment $4,500 $5,250
Monthly MI Rate (%) .80%/ .60% 0.85%
Monthly MI ($) $97/$73 $102
Principal/ Interest $726 $682
Total Monthly Payment $823/$799 $784


The Freddie Mac Home Possible advantage mortgage could be a great option. Call today to get more information and started on the loan process today!

Doctor Loan

Loan Overview:

Has heavy loan dept been a barrier to purchasing a home in the past? You aren’t alone. Student loan dept is cited as being one of the most challenging struggles to people from the ages of 25-34 entering into a house of their own. For those coming out of medical school Colorado Mortgage Group is offering a loan program to help.  This mortgage program has been created to help meet the needs of doctors just getting started on their career. Physician loans make qualifying easier, lower down-payments, and flexible insurance options.  One borrower must have a medical license. Eligible borrowers with student loan debt that is in deferment for 12 months beyond the Note Date are not required to include the deferred debt in the debt-to-income (DTI) ratio calculation.

Loan Amounts

Maximum: $850,000

Minimum: $20,000

Eligible Borrowers

At least one borrowers must hold one of the following valid license type and have student loans currently deferred for 12 months or more:

  • Medical Doctor (MD)Doctor photo
  • Medical Resident (Educational License)
  • Doctor of Dental Science (DDS)
  • Doctor of Dental Medicine or Surgeon (DMD)
  • Doctor of Optometry (OD)
  • Doctor of Ophthalmology (MD)
  • Doctor of Pediatric Medicine (DPM)
  • Doctor of Osteopathy (DO)

Ineligible Borrowers

  • Non-residential aliens
  • Non-permanent resident aliens
  • All trusts
  • Land trusts, except for Illinois Land Trust
  • Non-occupant co-borrowers
  • Limited Partnerships, general partners or corporations
  • Non-arms-length transactions

Eligible Property Types

  • 1-unit properties
  • Fannie Mae warrantable condominiums
  • Planned unit developments (PUDs)
  • Modular homes

To qualify you must have a minimum credit score of  700.  Colorado Mortgage Group is currently offering 5/1 adjustable rate at a term of 30 years and a 7/1 adjustable rate at a term of 30 years.  To see if you qualify or for additional assistance please call us at (303)-444-5251 or email at

FHA Condominium Project Approval

FHA Guideline Update:

Thought about purchasing a condominium in the past? FHA has just announced that is will be changing its rules to make it easier for buyers to get federally insured financing.  This is good news because traditionally condos have been a great way for first time home owners to step into a house.  Under new FHA guidelines second homes are no longer considered “investment property” for determining the owner-occupancy ratio of a condominium project.  Looking back before the change if someone had owned a unit in a condo project, and used the unit as a second home, that unit doesn’t count as part of the project’s 50-percent owner-occupancy threshold, which is required by FHA.  This meant that if someone wanted to own a unit in that project and fewer than half the units where owner occupied the borrower couldn’t get FHA-backed financing.

Today the FHA has widened its guidelines.  Below are the new guidelines provided by FHA:

The procedure for calculating the required owner-occupancy percentage is modified to allow units that are not investor-owned to be considered owner occupied for the purpose of Condominium Project approval. For the purpose of Condominium Project approval, a unit is considered to be investor-owned if the unit is:

• Tenant Occupied;

• Vacant and listed for rent;

• Existing (previously occupied), vacant and listed for sale; or

• Under contract to a purchaser that does not intend to occupy the unit as a Principal Residence or Secondary Residence. The term Principal Residence and Secondary Residence have the same meaning as defined in Handbook 4000.1.

For purposes of calculating the owner-occupancy percentage:

• on multi-phased projects, the owner-occupancy percentage is calculated on the total number of units in the first declared phase and cumulatively on subsequent phases; or

• for single-phase condominium project approval requests, all units are used in the denominator when calculating the required owneroccupancy percentage.

Streamline Condominium Re-certification:

FHA-approved condominium projects require re-certification after two years to ensure that the project is still in compliance with FHA’s eligibility requirements and that no conditions currently exist which would present an unacceptable risk to FHA.  For existing condominium projects seeking re-certification, FHA will now only require applicants to submit documents reflecting any substantive changes since the project’s prior approval.


For any questions or to take steps to get into a new condo. please call (303) 444-5251 or email us at

New Mortgage Guidelines Starting October 3, 2015

 New Mortgage Rules Aim To Simplify Information But May Slow Down The Process

As of October 3rd, the TILA-RESPA Integrated Disclosure Rule (TRID) will require lenders to provide potential borrowers with more detailed rate and fee information. This process will also give borrowers more time to review documents before closing.

When you think about buying a house, many questions may come to mind. Having the necessary information to make informed educated decisions is an important step in the mortgage loan process. Starting on October 3rd, 2015, new guidelines and regulations will aim to provide more details.  Mortgage rates and fee quote documents are a few of those details. What does this new regulation mean looking forward, and for those looking to get started in the journey of purchasing a home?

Guideline Background:

There are two regulations that are designed to protect borrowers from fee abuses currently:

  • The Truth In Lending Act (known as TILA or Regulation Z) established in 1968. This act protects borrowers from unforeseen closing cost abuses. The way in which it does this is by creating standards for the way mortgage fees and terms are calculated and communicated.
  • The Real Estate Settlement Procedures Act (known as RESPA or Regulation X) created in 1974.  This act aims to protect borrowers from false inflated real estate transaction costs.

As of October 3, 2015, the CFPB (Consumer Financial Protection Bureau) will bring together the two regulations mandated under TILA and RESPA into a simpler form. This is called the  TILA-RESPA Integrated Disclosure Rule, or commonly known as TRID.

With these new disclosures, the process might be slower-especially as lenders get used to the new rules.

Looking to the Future: 

Here is What Happens Prior to October 3rd:

  • Within three days of you applying for a home purchase loan, the lender must send you a Good Faith Estimate and an Initial Truth In Lending disclosure, these will show your quoted rate, sum of fees, terms and costs over the life of the loan.
  • Before closing (even if it’s the day of closing, which it often is), the lender will send you a HUD-1, which is a breakdown of all fees for the transaction, and a final Truth In Lending disclosure this will allow you to see if there have been any differences from the beginning.

Today’s process has been deemed too confusing and complicated by the CFPB.  The first time a borrower sees a HUD-1 which contains a formal breakdown of all the fees is at the closing table.  By that point it may be too late to make changes the borrower may see in their favor. In light of this information under the new TRID rules all new applications after October 3 will receive two disclosures.  One will be at the beginning and one will be at the end.

  • Within three days of you applying for a home purchase loan, the lender must sent you a Loan Estimate Form, which provides a detailed line-item breakdown of fees, cash needed to close, rate, terms and costs over the life of the loan. The lender must also obtain your intent to proceed before they can move forward.
  • At least three days before closing, the lender must send you a Closing Disclosure Form, which looks almost exactly like the Loan Estimate, but also separates which costs are paid by the buyer, seller, and third parties. What this means for the borrow is that you will have more time to make decisions and review the final terms of your agreement.

There will be some growing pains in the near future, as lenders, brokers, and other key players figure out the details of this new regulation. Talk to your lender today and ask what starting the lending process could look like for you.

How To Avoid Common Mortgage Approval Mistakes

The mortgage process can be an in depth process as well as time consuming. Ask your mortgage lender to help you during this season of your life.  Below are a few common mistake to avoid that will simply obtaining a mortgage approval. Stay clear of the following:

1. Avoiding or Leaving Out Information on Your Financial Profile

Colorado Mortgage Group will begin by reviewing your personal information.  This information will include employment, income, residence history, debts, and assets. The important take away is to answer every question and be truthful.  If every question about your financial profile isn’t answered, it has the potential to derail the loan process. It is better to know everything up-front so we can handle it before it becomes an issue.

2. Documentation, make sure you have everything

Your lender will next ask you for detailed documentation which may include:documentation photo

  • 30 days of pay stubs
  • Two years of tax returns and W-2s
  • Year-to-date business financial statements if you’re self-employed
  • Two months of statements for all asset accounts
  • Explanations and paper trails of all deposits (and often withdrawals)
  • A home insurance quote with adequate coverage
  • Full financials on any other homes or businesses you own

If any document is missing, providing it will be necessary to move forward. Colorado mortgage group will also run your credit, which can reveal employers, addresses, debts and other credit inquire. If new information comes to light, you’ll be required to explain and document all of it.

3. Pre-approval is not loan approval

You should consider your loan approved by an underwriter before you write any offer to buy a home. Lets talk about the difference between being “pre-approved” and obtaining loan approval.  Getting a mortgage “pre-approved” means you’ve talked to a lender, and provided the necessary documents listed above, and your personal profile looks good. This does not however mean you have loan approval.  The next step would be to get “underwriting approved”. This would mean obtaining a formal loan commitment in writing.  When this step has been accomplished your loan approval is official. Your Colorado Mortgage Loan officer will be the one to submit your file to an underwriter.

4. Not knowing what is realistic or being uninformed about rates

Avoid surprises when is comes to rates and get your lender to quote a rate based on your closing timeline.  Remember rates change daily.  Rates are based on how long they’re locked, for example a shorter lock at 15 or 30 days will have a lower rate that a longer lock such as 60 days.  As the borrower you are under rate market movement until you’ve entered into contract.  You are in contract when a seller accepts your offer.  It is key to know that before entering a contract you cannot lock a rate, this is because a rate is linked with the borrower and the property. Colorado Mortgage Group Publishes our rates online. These are the same rates you will receive when you call us for a quote.