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FAQ

Important information that will help and guide you through the lending process. 

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How much can I afford?

Deciding how much house you can afford is a personal decision. Many factors come into play. How much can I borrow? How much can I put toward my down payment? What size monthly payment can I afford?

There are no black-and-white answers to these questions. It’s a matter of give and take. If you plan on a 30-year mortgage, you can probably make a lower down payment and still manage the monthly payments. If, on the other hand, you plan on a 15-year mortgage, you’ll probably want to make a larger down payment to keep your monthly payments in line with what you can afford.

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How large a down payment can I make?


Many buyers look at their cash on hand as their only source for their down payment. This simply is not the case. One way to fund or partially fund a down payment is by using a gift. Parents, grandparents and other family members are often eager to help by making a cash gift toward the purchase of your home.

If you are selling a home, the equity you’ve built up can be applied to your down payment.

But these are not your only options. We can help you explore down payment options, including low down payment and 100% mortgage financing options for VA Loans that might be right for you.

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What size monthly payment can I afford?


When determining what size monthly payment you can afford, you’ll want to consider what other monthly expenses you have. Tangible expenses such as car payments play a role in how large a monthly payment you can afford.

There are also intangible expenses or lifestyle expenses that you’ll want to consider. Things such as dining out, travel, and when you buy your next car can affect how much you can afford. Are you willing to curtail or delay some of these expenses in order to afford a larger monthly payment?

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How much can I borrow?


This is a question you’ll want to get answered before you begin your home search. This is something that we’re here to help you with.

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We can answer any questions you may have about the mortgage process. But the best way we can help is by getting you pre-qualified for a mortgage loan. To get started, simply complete the form below to let us know a good time to contact you. We look forward to helping you buy your dream home.

What do you need to provide?

The items below may be needed in order to complete your loan application, please provide all applicable documents in a timely manner.

All documents must be dated within 60 days of closing, updated documents may be required throughout the loan process.

  • Documents needed, within 24 HOURS, to Proceed

  • Income Documents

  • 30 days of most recent pay stubs

  • Year to Date Profit & Loss statement (self employed only)

  • 2 years most recent tax returns

  • 2 years most recent W2’s or 1099’s

  • Asset Documents

  • 2 months of most recent consecutive bank statements (all pages, even the blank ones.)

Information Needed

  • Full 2 years of residential history

  • Full 2 years of employment or school history

  • Signed Authorization Package

The more we have upfront, the faster and easier the process will be!

What is the importance of getting Pre-Qualified

It is helpful to visit with a mortgage professional early, even if you haven’t settled on the sort of home to look for. What for? It might be hard to understand how we could help even before you start to talk about prices and negotiations.

Pre-Qualify


When we pre-qualify you, we help you figure out the amount in monthly payments you can fit in your budget, and how much we of a loan you will qualify for. We will accomplish this by considering your debts and income, your employment and housing situations, the funds available for down payment, required reserves, and other financial considerations. We ask for a minimum amount of paperwork, with a short,basic process.

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Once you qualify, will give you what’s called a Pre-Qualification Letter (your real estate agent may refer to it as a “pre-qual”), that states that we are working with you to find the right mortgage to fit your needs and that we are confident you will qualify for a loan for up to a certain amount.

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Power in pre-qualification


Various benefits are open to you when you’ve found your next house, and have achieved pre-qualification power. First, it helps you know the amount that you are able to offer. Even more important to the current owner, your pre-qualification letter gives them certainty – as if you had arrived at their home with a suitcase of cash to make the offer! They won’t have to worry that they’re wasting their time if they will not be able to qualify for a big enough mortgage loan. The seller of the home won’t wonder if he can count on you to qualify for your loan. Your qualifying for your needed mortgage loan amount won’t be something for them to fret over. You have the capability to back up your offer.

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We help with your pre-qualification


When we pre-qualify you, we help you find out how much of a monthly payment you can fit into your budget, and the loan amount you will qualify for. This process walks you through your finances – your debts, income, job, and cash available for a down payment, among other things. It’s quick and basic, and we keep the paperwork to a minimum.

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One on one


While you can benefit from our mortgage calculators on our site, it’s essential to meet with one of our mortgage professional team members. We can work toward your pre-qualification letter. For another thing, we could find a different mortgage program that fits your situation better. Let us help you get started: Contact us

How will my credit score affect my loan?

Since we live in a computer-driven world, it should come as no surprise that your ability to repay your mortgage comes down to just one number. The FICO score is created by credit reporting agencies. They use the payment history of all of your loans: mortgages, car/motorcycle loans, credit cards, and the like.

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Check your credit score here


The three credit reporting agencies use slightly different formulas to build a credit score. The original FICO score was developed by Fair Isaac and Company. Experian uses this model and calls its score FICO. Equifax’s model, based on FICO, is called BEACON, while TransUnion, which also uses a slightly modified FICO, calls its score EMPIRICA. While each of the models considers a range of data available in your credit report, the differences aren’t huge; all of the agencies use the following in calculating your score:

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  • Your Credit History – Have you had credit for many years, or for a short time?

  • Payment History – Do you pay your bills on time?

  • Balances on your Credit Cards – How many credit card accounts do you have, and how much do you owe?

  • Inquiries on Your Credit – How many times have you had your credit checked for a loan?

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These factors are assigned weights based on the formula being used. The results are added up and distilled into a single number. FICO scores range from 300 to 800. Higher scores are better. Most home buyers these days have a score above 620.

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FICO makes a big difference in your interest rate
Did you know? FICO scores affect more than your ability to get a loan. They also affect your interest rate. Lenders give lower interest rates to individuals with higher scores.

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Improving your score


Is it possible to raise your FICO score? Some companies promise quick fixes, but they can’t do anything different than what you can do — for free. (Of course you can and should appeal incorrect items on your credit report.)

Know your FICO


In order to improve your score, you must get the reports that are used to build it. Of course, you need the score as well. Fair Isaac has created a website (www.myFICO.com) that lets you do just that. It’s inexpensive, fast, and easy to get your credit score as well as credit reports from all three credit reporting agencies. They also provide helpful information and tools that help you analyze what actions might have the greatest impact on your FICO score.

You can get a free credit report every year from all three agencies when you visit AnnualCreditReport.com. While this report does not include a free credit score, the cost to “upgrade” your report to include a credit score is very reasonable.

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Now that you have all the facts, you will be a more informed consumer and you’ll be better positioned to get the right mortgage for you.

Locking In Your Rate

When you are offered a “rate lock” from a lender, it means that you are guaranteed to keep a set interest rate for a certain number of days for the application process. This protects you from going through your whole application process and learning at the end that your interest rate has gotten higher.

Rate lock periods can be various lengths of time, between fifteen to sixty days, with longer spans typically costing more. A lender will agree to hold an interest rate and points for a longer span of time, say 60 days, but in exchange, the rate (and sometimes points) will be higher than with a rate lock of fewer days.

More Ways to Get a Great Interest Rate
There are other ways to get a lower rate, in addition to going with a shorter rate lock period. The larger the down payment you can pay, the lower the rate will be, as you will be entering the loan with more equity. You can pay points to improve your rate for the loan term, meaning you pay more upfront. One strategy that is a good option for many people is to pay points to bring the rate down over the term of the loan. 

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1836 S Sheridan Blvd

Denver, CO 80232

© 2024 by DNVR Realty

All information is deemed reliable but not guaranteed and should be independently reviewed and verified.

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Brokerage: 

DNVR Realty

303-350-8142

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Broker of Firm:

Kim (Thu Le)

Thong Le

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