Home Loans, Credit Scores, etc.
There are still two programs that are 100% financing for home loans:
1. The VA loan for veterans and reservists.
2. The Rural Housing Program, for properties outside urban areas. In Mesa County that would be places such as Fruita, Palisade, Whitewater, Mack, Loma, Gateway, DeBeque, Mesa and Collbran, Colorado. FHA (Federal Housing Authority) loans require 3.50% down payment and Conventional Loans require 5% down payment.
Most loans require a credit score of at least 620. However, the higher the credit score the better deal you will get on the interest rate. A 740 credit score or above is the best. So before going to a lender, get a copy of your free credit report at annualcreditreport.com Dispute anything that is incorrect with the 3 major credit repositories. If you don’t have a credit score, get a credit card from somewhere like Orchard Bank, which can be backed by your own money. Borrow a small amount and pay back every month on time until you establish good credit.
PROOF OF INCOME
You do need to prove your income, which is a requirement in the State of Colorado. If you are employed, then your most recent 30 day paystub plus last years W-2 will be needed. If you are self employed, the last 2 years of your federal income tax will be required.
CONTRACT ON A HOUSE
Before putting a contract on a house, you will need to be pre-qualified for a mortgage. I would recommend getting referrals from family and friends.
In order to get a license in the State of Colorado, all Mortgage Brokers must pass a background check, credit check and take a annual mortgage loan test before they can be licensed. Mortgage Brokers are also required to be bonded and take updated educational classes each year.
Mortgage Brokers usually have several lenders they can shop your home loan to, and as a big advantage aren’t locked into the policies of one lender. You should look at 3 lenders at the very minimum. You need to get at least one Good Faith Estimate of closing costs from each of those lenders. Then at this point, you will need to decide if you should go for the lowest interest rate or the lowest closing costs or something in between.
Once you have a contract on the house, then you will need to make application for the loan. You will need to get all documentation your lender and underwriter asks for. You should then get an approval from the lender and a cleared to close. This process generally takes about 30 days.
Next step, enjoy your new home.
The purpose of this website is to try and answer some of the questions you may have so that the process isn’t so complicated and stressful. Good answers to your questions can save you a lot of time, money and grief in the long run. If you are interested in pre-qualifying for a home loan, or just want to ask some questions, please don’t hesitate to call. The contact information is shown below. – Rhonda Sherman
To get things started, we will need the following information:
1. Most recent 30 day paystub.
2. Last 2 years W-2′s.
3. Most recent bank statement.
DEPENDABLE MORTGAGE CO.
Rhonda Sherman, Owner
License # 100008357 NMLS # 381084
145 Grand Ave., Suite B
Grand Junction, CO 81501
(970) 257-1502 or 250-8613
Website: Dependable Mortgage Co. (apply online 24/7)
Equal Housing Lender
Regulated by Real Estate Division