Are you a first-time home buyer in Colorado? Here’s how to qualify!
Purchasing your first home can be both exciting and overwhelming. The hardest part is often knowing where to start. That is where our team of knowledgeable experts come in to help you through every step of the way.
Talk to our team of expert lenders
The good news is, you don't have to figure it out on your own. We will start out by getting to know you and your goals. We want to make sure you are comfortable and get all your questions and concerns addressed before moving forward.
Complete the loan application
Completing the loan application is where things start really moving forward. The application determines what loan types and down payment assistance programs you will be eligible for. The application is all online and will take you 10-20 minutes to complete.
What is a loan application? Why do I need to fill it out?
The loan application takes into account various key factors to ultimately determine your eligibility. In order to qualify there are three main eligibility requirements.
- Stable Income: Income can come from full and part-time employment, self-employment, retirement income, disability income, and other qualifying sources.
- Credit Score: the minimum credit score is 600-620. If you are close, we might be able to help you reach this goal.
- Debt to Income Ratio: Considered debts are car loans, minimum credit card payments, student loans, personal loans, child support/alimony, IRS payments. Utilities are not included in this calculation.
What happens if I don’t meet the eligibility requirements?
It is okay if you don’t meet all the requirements at this time, we can help create a plan to get you where you need to be.
- Stable Income: What does your current income situation entail? Are certain pay periods or other timing issues impacting your approval? Do we need to take another look at your self-employment tax returns?
- Credit Score: If your credit score is just below the eligibility threshold, the lending team can often run credit simulators that will give you a game plan on how to start increasing your score. The lending team can also advise you on how to handle any past debts.
- Debt to Income Ratio: If you are not happy with your approval amount, this could be due to debt reporting on your credit. The lenders will make a plan on with debts to pay down to reach your desired purchase price.
How much money do I need to save before purchasing a home?
The goal is to get you into a home for $1,000 plus inspection costs. Working with a great realtor that understands down payment assistance programs, and how to negotiate seller paid closing costs is key. We have a team of realtors on our side that help with these negotiations and specialize in working with first time home buyers.
Do I have to be a first-time home buyer to qualify for down payment assistance?
You can qualify as a first-time home buyer again 3 years after the sale of your other home. Although, a lot of down payment assistance programs don’t require you to be a first-time home buyer and even let you own one other home.
Is there an income limit for down payment assistance?
No! Some down payment assistance programs have no income restrictions.
Why do I have to get pre-approved before looking at homes?
- Know your budget and estimated monthly payments
- Know what programs you qualify for
- Understanding the loan process and the loan programs
- Sellers will expect a preapproval lender letter when you offer on their home
- How much money will I need and how do I source the money I will be using
- Feeling confident
Are you ready to start exploring your options?
Check out your options and eligibility at Colorado First Time Home Buyer
Your first home could be closer than you think.
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