Site search
sponsored by
News
Question: Allison, we would like to purchase a second home in Keystone, Colorado, but we need to get a loan and we have heard that it’s nearly impossible right now. What should we do?
Answer: I spoke with Jim Doyle with Lake Dillon Mortgages and here is his take on the lending situation today.
The mortgage industry is going through many modifications, all leading to positive change for the real estate and lending industries. Who, among us, does not wish for moderately rising prices and stable interest rates? With the industry changes, we are witnessing a new way of doing business. Actually, it is a return to the old way of doing business. Excellent loans are being originated every day and will continue to be made. These loans are being reviewed with increased scrutiny regarding appraisals substantiating market value, borrowers having a reasonable amount of money to put into the transaction, good credit scores and proven income demonstrating a willingness and ability to repay the mortgage.
In the recent past, many loans were made under questionable circumstances, but now, with the State of Colorado leading the way to protect buyers from the unscrupulous practices we have all read about, things have changed for the better.
Real estate agents and mortgage brokers conducting business in Colorado must be licensed with the Division of Real Estate pursuant to Senate Bill 07-203. “Only those mortgage brokers who are licensed or exempt from licensure by law may broker a mortgage, offer to broker a mortgage, act as a mortgage broker, or offer to act as a mortgage broker.” Loan broker contact information, surety bond information and errors and omissions insurance information, can be verified by a visit to dora.state.co.us/real-estate/mortgagebrokerregistration.htm
Any questions about any broker or agent can also be verified with a call to (303) 894-2166 or (303) 894-2185 at DORA - Department of Regulatory Agencies for Colorado.
What should a potential buyer do and be aware of in the loan application process? Here are some points to consider.
1. A potential buyer is encouraged to work with a well established local lender in Summit County. These lenders know the intricacies of the area and will be able to offer straight talk form the first meeting. Internet lenders often seem to offer competitive possibilities, but as the lending process proceeds the advantages of being sure you are working with a State licensed broker will become very apparent. Local lenders are familiar with obtaining proper appraisals and surveys. They have established excellent working relationships with local Realtors, title agencies and know where to turn for condominium information and insurance requirements.
2. Summit County and some of the surrounding areas are now able to obtain higher loan limits for conforming loans than other areas of the country. The jumbo cut-off in Summit County is higher than lower limits in other parts of the country. This higher limit provides a better rate with lower payments. Check with your mortgage lender for exact amounts.
3. A borrower is well advised to choose a lender who offers all types of loans, including Conforming and Non-Conforming loans, VA and other government financing. Private Mortgage Insurance is available for owner occupied and second homes to allow smaller down payments. The tax deductible possibility of this insurance makes these loans very competitive.
4. Real estate agents are now requesting documentation showing borrowers are pre-approved as opposed to pre-qualified This pre approval will consist of a an examination of credit, earnings, assets and findings from the automated underwriting systems through FNMA or FHLMC subject to the review of the property and appraisal.. An assigned case number with evidence of the approved findings should always be documented in the pre- approval letter along with the mortgage broker’s Colorado license number.
It is best to complete this step of the loan process before you begin looking for your new home.
No one benefits when a property is under contract only to discover later that a “pre-qualified’ borrower no longer qualifies for a loan because verifications and documentation required to finish the loan process was not 100% complete.
5. If you are a seller and planning on getting a mortgage for your next home, it would also be wise to get pre-approved for a likely new purchase prior to listing your current home.
6. The processing time for many types of loans has slowed recently due to additional documentation requirements. It’s always best to work with that local lender who has a reputation for on-time closings. The best lenders can put their money where their mouth is and give assurances of closing dates. Local real estate agents and title companies know the lenders who always get the money to the closing table on time.
7. In order to make sure all dates are made, a buyer should be prepared to do their part in the application process and provide all the documentation requested by the lender in a very expeditious time frame. All of the information requested may seem intrusive, but the process insures the best rates and a timely close.
Jim and Kevin Doyle, Julie Lobato and Marti Murphy are owners of Lake Dillon Mortgage Services, Inc. They can be reached for a free consultation at 970-468-9402 or toll free at 888-722-4749.
For answers to your real estate questions, call Allison at 970-468-6800. E-mail — Info@SummitRealEstate.com. Allison is a long time local in Summit County. Summit Real Estate — The Simson/Nenninger Team is located at the Dillon Ridge Marketplace. Allison’s long-time residency and years of real estate experience can help you make the most of any buying or selling situation. She’s a Certified Residential Specialist (CRS), the highest designation awarded to a Realtor in the residential sales field. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours. Want to know the value of your Summit County property? Visit www.SummitHomeValue.com
Answer: I spoke with Jim Doyle with Lake Dillon Mortgages and here is his take on the lending situation today.
The mortgage industry is going through many modifications, all leading to positive change for the real estate and lending industries. Who, among us, does not wish for moderately rising prices and stable interest rates? With the industry changes, we are witnessing a new way of doing business. Actually, it is a return to the old way of doing business. Excellent loans are being originated every day and will continue to be made. These loans are being reviewed with increased scrutiny regarding appraisals substantiating market value, borrowers having a reasonable amount of money to put into the transaction, good credit scores and proven income demonstrating a willingness and ability to repay the mortgage.
In the recent past, many loans were made under questionable circumstances, but now, with the State of Colorado leading the way to protect buyers from the unscrupulous practices we have all read about, things have changed for the better.
Real estate agents and mortgage brokers conducting business in Colorado must be licensed with the Division of Real Estate pursuant to Senate Bill 07-203. “Only those mortgage brokers who are licensed or exempt from licensure by law may broker a mortgage, offer to broker a mortgage, act as a mortgage broker, or offer to act as a mortgage broker.” Loan broker contact information, surety bond information and errors and omissions insurance information, can be verified by a visit to dora.state.co.us/real-estate/mortgagebrokerregistration.htm
Any questions about any broker or agent can also be verified with a call to (303) 894-2166 or (303) 894-2185 at DORA - Department of Regulatory Agencies for Colorado.
What should a potential buyer do and be aware of in the loan application process? Here are some points to consider.
1. A potential buyer is encouraged to work with a well established local lender in Summit County. These lenders know the intricacies of the area and will be able to offer straight talk form the first meeting. Internet lenders often seem to offer competitive possibilities, but as the lending process proceeds the advantages of being sure you are working with a State licensed broker will become very apparent. Local lenders are familiar with obtaining proper appraisals and surveys. They have established excellent working relationships with local Realtors, title agencies and know where to turn for condominium information and insurance requirements.
2. Summit County and some of the surrounding areas are now able to obtain higher loan limits for conforming loans than other areas of the country. The jumbo cut-off in Summit County is higher than lower limits in other parts of the country. This higher limit provides a better rate with lower payments. Check with your mortgage lender for exact amounts.
3. A borrower is well advised to choose a lender who offers all types of loans, including Conforming and Non-Conforming loans, VA and other government financing. Private Mortgage Insurance is available for owner occupied and second homes to allow smaller down payments. The tax deductible possibility of this insurance makes these loans very competitive.
4. Real estate agents are now requesting documentation showing borrowers are pre-approved as opposed to pre-qualified This pre approval will consist of a an examination of credit, earnings, assets and findings from the automated underwriting systems through FNMA or FHLMC subject to the review of the property and appraisal.. An assigned case number with evidence of the approved findings should always be documented in the pre- approval letter along with the mortgage broker’s Colorado license number.
It is best to complete this step of the loan process before you begin looking for your new home.
No one benefits when a property is under contract only to discover later that a “pre-qualified’ borrower no longer qualifies for a loan because verifications and documentation required to finish the loan process was not 100% complete.
5. If you are a seller and planning on getting a mortgage for your next home, it would also be wise to get pre-approved for a likely new purchase prior to listing your current home.
6. The processing time for many types of loans has slowed recently due to additional documentation requirements. It’s always best to work with that local lender who has a reputation for on-time closings. The best lenders can put their money where their mouth is and give assurances of closing dates. Local real estate agents and title companies know the lenders who always get the money to the closing table on time.
7. In order to make sure all dates are made, a buyer should be prepared to do their part in the application process and provide all the documentation requested by the lender in a very expeditious time frame. All of the information requested may seem intrusive, but the process insures the best rates and a timely close.
Jim and Kevin Doyle, Julie Lobato and Marti Murphy are owners of Lake Dillon Mortgage Services, Inc. They can be reached for a free consultation at 970-468-9402 or toll free at 888-722-4749.
For answers to your real estate questions, call Allison at 970-468-6800. E-mail — Info@SummitRealEstate.com. Allison is a long time local in Summit County. Summit Real Estate — The Simson/Nenninger Team is located at the Dillon Ridge Marketplace. Allison’s long-time residency and years of real estate experience can help you make the most of any buying or selling situation. She’s a Certified Residential Specialist (CRS), the highest designation awarded to a Realtor in the residential sales field. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours. Want to know the value of your Summit County property? Visit www.SummitHomeValue.com
