Not Available for All Buyers in Denver

For years lenders in Denver have done a “loss leader” advert and were chastised in the Dodd Frank act for predatory lending. In this new atmosphere you need to be aware that they might advertise a rate that you can only get if you close in 10 days or any other reason. But now they have your loan application. Just so you know it is very difficult to get an appraisal that quickly. So my advice to you is to work with a lender you or your Realtor know.

Lenders regularly publish mortgage rates but they may not be available for all buyers. Denver

Imagine that the mortgage payment based on an advertised rate influenced a buyer to make an offer on a home. After negotiating a binding contract, this buyer makes a loan application and finds out that for any number of possible reasons, that rate isn’t available.

Even if the person does financially qualify for a loan at a higher interest rate, it will not be the payment that the buyer expected when the contract was negotiated.

Lenders evaluate several factors such as the borrower’s credit score, debt-to-income and loan-to-value ratios. These variables are used to assess the risk associated with the repayment of the loan.

While mortgage money is a commodity, it isn’t priced the same way items are that involve cash for goods. The lender puts up the money today based on a promise from the borrower to repay over a long term, possibly up to thirty years.

The simple solution to avoid surprises such as the one described here is to get pre-approved at the beginning of the home search process. Since pre-qualification does not mean the same thing to all lenders, call if you’d like a recommendation of a trusted mortgage professional.

If you want to talk with some trust worthy lenders go to http//www.DenverRelocation.com/lenders.shtml

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About Pete Doty

As a Realtor® Pete has been working in the Denver residential market since he first started in 1985, and focusing primarily in the south end of town. He finds the client the home they want, and then help them sell it when they want to move. Marketing is really where his heart is, and making sure his clients’ interests are watched over in Littleton, Highlands Ranch, Parker, Castle Rock, Centennial, Englewood, Morrison or Denver. His web site www.DenverRelocation.com ranks high in search rankings and generates numerous relocating buyers each year. Talk to Pete for a unique perspective on today’s real estate market in Denver.

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