Getting Started

If you’re like most people, purchasing a home is probably one of the biggest investments you’ll ever make in your lifetime. If you’re considering buying a home, you’re likely aware of the complexity of the endeavor. Because of the numerous factors to consider when purchasing a home, it’s important to prepare as best you can. At Hunter Lending, we are dedicated to finding the loan that fits your individual needs .

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Family Buying a House

How it Works

Understanding the Purchase Process

Select a tab below to learn more about the purchase process and how Hunter Lending will guide you every step of the way.

Prequalification occurs before the loan process actually begins. The lender gathers information about your income and debts, and makes a financial determination about how much house you may be able to afford. It’s a good idea to know how expensive a home you can afford before you start shopping for one! If you are refinancing the loan on your existing home, then the pre-qualification process should help you decide whether refinancing is a good idea for you.

The application is the beginning of the loan process and either occurs after you have found a property you want to buy or have determined that you wish to refinance the loan on your existing home. You complete a mortgage application for a particular loan program and, supply all of the required documentation for processing. Various fees and down payment options are discussed at this time. The loan officer will deliver a Good Faith Estimate (GFE) and a Truth-In-Lending Disclosure (TIL) within three days that itemize the rates and estimated costs for obtaining the loan.

The lender will typically submit the application package to an automated underwriting system that will provide the lender with the necessary documentation needed for loan approval. In some cases, the lender may also manually underwrite an application package. The lender’s processor reviews the credit reports and documentation to verify your employment, debts, and payment histories. If there are unacceptable late payments, collections, judgments, etc., the processor requests a written explanation from you. The processor also reviews the appraisal and survey and checks for property issues that may affect final loan approval. The processor’s job is to put together an entire application package for the lender’s underwriter.

The lender’s underwriter is responsible for determining whether the application package prepared by the processor meets all the lender’s criteria. If more information is needed, the loan is put into “suspense” and you will be contacted to supply more documentation. If the underwriter approves the loan, the lender issues a conditional commitment to lend, orders title insurance, works with you to clear all conditions to its commitment to lend, and then schedules a closing time. Conditions to the lender’s commitment may include issues with credit, income, or the property that may arise during the processing and underwriting process.
The closing will occur after all conditions are cleared and the lender issues a full loan approval. At the closing, the lender “funds” the loan with a cashier’s check, draft or wire to the closing agent, who disburses funds, in exchange for the title transfer to the property. This is the point at which you finish the loan process and actually refinance or buy the house, subject to the lender’s loan. Closings occur at different places in different states. For instance, some states require that the closing take place at a closing attorney’s office, while others use a title or escrow company. You may also be able to close at your home.
After closing, we keep a database of important factors such as interest rate, term and your financial goal so that we can keep you aware of future dips in rates so that you can continue to achieve your goals as a rapid place. We watch the markets daily and when there is an market spike we notify you so that you do not miss an opportunity.

What is a First Mortgage Home Loan?

When it comes to buying a home, you know that comparing Colorado home loans is essential so you can find the best terms. A first mortgage is typically required to buy a new home, as most buyers don’t have the cash on hand to purchase real estate outright.

The trick, of course, is finding the best first mortgage home loans in Denver, and Hunter Lending offers not only the options you’re seeking, but also the expert advice you need to make informed decisions.  If you’re an active military member of a veteran who was honorably discharged from service, you could qualify for a VA loan.

For those who are struggling to buy a home with low credit and a minimal down payment, an FHA loan could be an option.  If you have good credit and a sizeable down payment saved up, you’re likely to qualify for conventional home loans Colorado.

At Hunter Lending, we’ll work with you to understand your financial position, discuss your wants and needs, and provide the best possible financing options to help you purchase a home and start building equity.  When you seek preapproval for Denver home loans, you’ll know exactly what type of funding you have available when you bid on a property, and you’ll have the best chance to close the deal quickly, instead of waiting for approval while other buyers jump in with competitive bids.

Benefits of First Mortgage Home Loans in Colorado

The main benefit of first mortgage home loans in Denver is that they give you the opportunity to buy a home, even though you don’t have the money to purchase property outright.  After all, most people don’t have half a million dollars lying around to plunk down on a house.

If you have good credit and an acceptable down payment, you can enjoy the best terms for Colorado home loans, including low interest rates.  Even if you aren’t the ideal loan candidate, however, you’ll find that the experienced team at Hunter Lending can help you find suitable options that work with your circumstances.

Owning a home is a big part of the American dream, and Hunter Lending knows how much it means to individuals, couples, and families to escape the wasted spending associated with renting and take advantage of an investment opportunity where every dollar spent builds equity.  The right first mortgage home loan can make your dream a reality.

What is a Second Mortgage Home Loan?

Homeowners may seek second mortgage home loans in Denver for any number of reasons, but they are often used to complete repairs or upgrades that maintain or improve home value. You’ve heard the old adage “you have to spend money to make money”, and when it comes to your biggest investment, this is absolutely true.

If you let your property fall into disrepair, it will lose value, potentially impacting your ability to sell it down the line, and definitely reducing profit.  When you keep your home well-maintained and reinvest equity for beneficial upgrades like roof replacement, kitchen and bath renovations, or building additions like extra bedrooms, you have the best opportunity to maximize your investment and enjoy a comfortable and attractive home in the meantime.

A second mortgage is much like the first, but smaller.  The amount you can take out is based largely on the equity you’ve built in your home, although other factors (income, other debts, credit rating, etc.) could also play a role.  This loan is separate from your first mortgage and will come with its own terms, including a fixed rate and repayment period.

You will also have closing costs, just as with a first mortgage Denver home loans, so keep that in mind when considering how much to borrow – you can often roll the closing costs into the final loan rate as long as you don’t exceed the loan-to-value ratio limit.

Benefits of Second Mortgage Home Loans in Denver

When you’ve built up some equity in your home, you’ll find that you have options for new home loans Colorado, specifically second mortgages.  You can benefit from the equity in your home by gaining access to additional funds that could be used for home improvements or other expenses, like sending kids to college or paying off unexpected medical bills.

The main benefit of second mortgage home loans in Denver, aside from access to needed funds, is that they come with a fixed rate, so you never have to worry about fluctuations in the prime impacting costs.  In addition, you may have improved your credit rating by making payments on your first mortgage, which could net you even better rates the second time you seek lending.

What is a HELOC Home Loan?

A home equity line of credit, or HELOC loan, is a type of second mortgage (unless your first mortgage is paid off, in which case it could be considered a first mortgage of sorts). The main difference here is how you receive the funds. With a second mortgage, you’ll receive a lump sum that you typically pay back at a fixed rate, much like your primary mortgage loan.

HELOC loans in Colorado offer greater flexibility to spend and repay as needed.  This line of credit is approved for a certain amount, which is available to you as needed, but you can take it out incrementally.  What does this mean?  You only repay what you use, and you only pay interest on the amount you use.  In some ways, this revolving line of credit is more like a credit card than a traditional loan.

The second difference is that you’ll typically enjoy a lower interest rate when you choose HELOC loans in Denver, but you must agree to a variable rate, which means it will fluctuate with the prime.  This could work in your favor if the market trends down, but if it trends up, you could end up paying more at some points (although possibly saving in the long run).

It’s a risk, but if you’re worried, you could always consider converting to a fixed-rate loan or refinancing your mortgage and rolling in your HELOC down the line to lock in a fixed rate.  The amount you can be approved for will depend on the equity in your home, among other factors.

Benefits of HELOC Loans in Colorado

If you’re trying to decide between a second mortgage home loan and HELOC loans in Denver, you’ll find that there are several benefits to consider with the latter, starting with lower interest rates, in most cases.  In addition, you’ll typically encounter very low closing costs, or none at all.

HELOC loans in Colorado feature a line of credit that remains open for a fixed draw period, say 5 or 10 years, during which you can withdraw and repay funds as you see fit.  The payback period is typically twice the draw period (10 years for a 5-year draw period or 20 years for a 10-year draw period, for example).

Another major benefit is that you only take out what you need when you need it, and use it for whatever you want, from home improvements, to family vacations, to helping your kids with educational expenses, to medical or other emergency costs.  You’ll make monthly payments that include principle and interest only on the amount you’ve withdrawn.

Further, there are no penalties for early repayment and you may have the option to convert to a fixed-rate loan later on.  There are benefits to both second mortgage and HELOC loans, and the experienced team at Hunter Lending can help you to choose the right option for your particular needs and preferences.

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