Financing a Home

Visions of the stunningly modern kitchens, luxurious baths and spacious closets are likely the first things to come into your head when shopping for a new home at The Lakes at Centerra. Before you can get into the creative and fun elements of buying a home, it’s important for homebuyers to understand how to finance a home in Loveland, CO. Below is a list of helpful information for financing homes so that you can make your dream house a reality.

First, take a moment to do a self-financial analysis check early in your process of homeowner financing to avoid surprises:

• Are my credit card reports accurate, up-to-date and correct?
• What information will I need to gather to apply to finance my new home?
• What can I afford in the way of a mortgage?
• What are my loan options?
• Where do I learn more about, and ultimately shop for, a mortgage?

Once you’ve gone through these questions, start to organize yourself by creating a personal file with your credit information, documentation of income, employment, bank accounts and IRS filings.

After your important documents have been organized, it’s time to start researching different types of loans. Before you visit with a mortgage lender, familiarize yourself with different mortgage loans by thinking of them in terms of their problem-solving characteristics:

• FHA Loans: If you’re working with minimal cash for a down payment or your credit history has a few blemishes, a federal government-backed loan is most likely your best choice. FHA (Federal Housing Administration) loans allow down payments as low as 3.5% along with generous credit underwriting.
• Conventional Loans: If you have more than 10% or 20% to put down, these may be your best bet. Be aware that conventional underwriting rules are stricter, and banks may impose add-on fees to loans, increasing your cost. Down payments below 10% may be possible but they require high private mortgage insurance premiums.
• VA Loans: For military veterans a VA loan can be a great option, as they don’t require a down payment. Note that you must be a veteran to qualify.

Once you’ve done your research, you may want to consider looking online for a home finance calculator and start crunching numbers. If you have questions about the process of buying a home in Loveland, or are ready to take a tour of the beautiful model homes at The Lakes at Centerra, get started by consulting our builders’ onsite home-selling specialists.