Owning a Denver home is a huge decision and before jumping into home buying, you should be clear on a number of things that will allow you to make informed decisions. The loan that you choose should be one that you will feel comfortable with and the best way of doing this is to ask questions of the lender before deciding which one will benefit you when buying a Denver home.

The lender you choose actually should be asking you questions before suggesting any type of loan. They should gather information that will allow them to suggest the loan for a Denver home that will be the most beneficial choice for your situation. The lender should also be up to date on loans such as negative-amortization, interest-only, adjustable-rate and fixed-rate loans.
Do not be afraid to ask about percentage rates and have them explained to you. The loan you choose for your Denver home will determine how this is computed. An adjustable loan is virtually impossible to accurately calculate an APR rate on and you should ask about the adjustment frequency as well as the maximum annual adjustment, the index, the margin and the highest rate. Understanding the loan before you get it is essential if you are to get the best one for your needs.
Do you know about origination fees and discount points? If not, this is definitely an area you will want to have explained before buying a Denver home. The points are equal to 1% of the loan you will be getting. Each point is 1%. Paying more points will lower your interest rate. The points are also tax deductible regardless of who pays them.

Be aware of the fact that many of the costs associated with buying your Denver home will go to the lender or a third party. Fees include the appraisal, lender’s title policy, credit report, recording fees, pest inspection reports, taxes and escrow (if this is applicable). Find out if your lender does their own underwriting and what the time frame is going to be on closing. The more informed you are the better choice you will make for yourDenver home loan.

Please contact New Era Realty to learn more about your Denver home, or any of the many wonderful Denver loft and condominium offerings at (303)-522-7746 or (800)-392-1950.