Homebuyer's Guide

You Deserve a Home You Love 

Time For You to Make a Move

If you're considering purchasing a new home in Colorado - or researching for the day you feel ready - you've already made a great decision for both your finances and quality of life.

With rising home prices, low rates, great financing options, and a higher cost of living for renters, now is the perfect time to make the move to homeownership, and educating yourself on the process and available options is the first step.

This guide will walk you through:

  • The Mortgage Process

  • What you can expect from your homebuying experience

  • The benefits of owning your own home

  • Why now is the optimal time to start investing in your future through homeownership

Security First Financial is here to answer any questions you have.

We can help you understand more about:

  • Home loan programs

  • Current mortgage rates

  • The home loan process

  • What you'll need for your application

  • What to expect after you complete your application

 

Apply for a Mortgage Online

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The Mortgage Process

The Easy Way Home

With paperwork, credit checks, and some very significant financial decisions, financing a home can seem daunting. An experienced mortgage professional can deliver a smooth and easy loan process that's easy to understand and over before you know it.

 

Step 1: Pre-Approval

Submit your loan application and get pre-approved for your ideal mortgage program before you start shopping for a home. Your program will be carefully selected by your loan officer to fit your specific needs and circumstances.

 

Step 2: Start Shopping

Find the perfect home with advice and guidance from your dedicated real estate team. If you don't have a real estate agent yet, don't worry, we have some stellar recommendations.​

Step 3: Property Review

A professional appraises the home's fair value so you know you're getting the best deal.

 

Step 4: Credit Decision

The underwriter approves your loan, and keep you updated throughout the process so you always know where your loan stands.

Step 5: Signing

Your loan documents are prepared and thoroughly explained, so you can confidently sign on the dotted line.

Step 6: Welcome Home

The funds are disbursed to all parties, the title company records your new lien ar the county, and you are the official owner of your perfect new home.

Get Your Home Loan Approved Fast

It’s Easier Than You Think

To get your loan application finished quickly with the best chance of approval, here are some of the main items we will need from you:
 

Income Documentation

  • W2 or 1099 forms for the last 2 years

  • Filed tax returns for the last 2 years

  • All pay stubs from the last 30 days
     

Asset Documentation

  • Bank statements for the last 2 months

  • Most recent quarterly retirement statement
     

Miscellaneous

  • Driver's license

  • Homeowners’ insurance contact information
     

Make sure you have your documents ready to go, and we’ll take care of the rest.

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What to Expect During the Mortgage Process

Knowledge is Power

The more you know heading into your home search, the easier it will be to get the perfect home with the perfect loan...

Down Payment

A 20% down payment is sometimes recommended to homebuyers as a rule of thumb, and while it's great to put down to eliminate the need for Private Mortgage Insurance (PMI), it is by no means the absolute minimum. There are loan programs that allow for much lower down payment percentages.

Colorado offers numerous down payment assistance programs to help residents purchase homes.

Credit Report

Contrary to popular belief, you don't need perfect credit to qualify for a mortgage loan. There are special mortgage programs designed for lower-credit borrowers; you could be able to qualify even with scores in the 500s.​

Whether you've got a low credit score, minimal credit history, or limited funds to put down, there are mortgage solutions available to help you finance your homeownership dreams.

Pre-approval

A pre-approval from a respected lender is not only a great way to show sellers you're a serious buyer, but it's also the most accurate measure of how much house you can afford. 

Having your loan originator review your finances and preapproved you for a set loan amount will save you time and guesswork on your home search, and is an essential first step to a successful purchase.

Appraisal

Once you've found the right house, a third-party inspector will go over every nook and cranny to make sure the home is being sold at a fair price for its value. This step is crucial to knowing that you're getting a fair deal, and can also alert you to any necessary repairs or other issues on the horizon.​

Make sure you work with an appraiser that you and your real estate agent trust, and feel free to ask if you can join them on the day of inspection.

Why Buy?

Investment Starts at Home

A good home is likely the most expensive purchase you'll make in your lifetime, but the many benefits of ownership make it the best option for anyone looking to secure their financial future - especially when compared to the alternative.

Return on Investment

No matter how good a deal you get on your rent, the amount you're paying is going into someone else's pocket when it could be staying in your own.

Homeowners build equity every time they make a mortgage payment, and those funds are returned when you sell the home or access the equity through a refinance. The same goes for any updates, remodels, or other value increases, which is not something that can be said for apartments.

There's a reason that real estate is considered one of the smartest investments you can make - the barrier entry is low and you know exactly where your money will be when you need it.

Flexibility

Customizing your space to suit your needs and taste is a quintessential feature of the American dream and the one that is unfortunately denied to renters. Upgrading features for increased comfort and livability carry the added benefit of increased property value, and improvements can even be financed in the same loan you use to make your initial purchase.

Homeowners also retain value and flexibility when it comes time to move on to another home, whereas breaking a lease, if possible, can be an expensive and frustrating process.

Taxes

The many federal tax incentives made available to homeowners are just one more way that your property can help save you money in both the short- and long-term.

Paying less in taxes, investing extra funds into home improvement, and building equity through mortgage payments forms a cycle of financial benefits that will keep your money growing, instead of dwindling unnecessarily with each rent payment.

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Receiving Keys To The New Place - Security First Financial Homebuyer's Guide

Why Buy Now?

No Time Like the Present

Purchasing a home is almost always a more sound decision than renting an apartment, but now is an especially good time to make the leap to homeownership. Here's why:​

Prices & Rates

The demand for homes has been steadily on the rise in recent years, and with a limited supply available, median home prices have gone up. Projections show prices continuing to increase in the immediate future, meaning those who buy now should see an appreciation on their investment for years to come.

 

Waiting to buy can mean higher prices when you eventually decide to purchase a home, and higher interest rates to match. Loan programs are available to accommodate almost any financial situation, so the sooner you discuss your options with a trusted mortgage professional, the better. ​

Affording Payments

Many renters fear that they don't have enough income to afford monthly mortgage payments, but at the moment the opposite is actually true.

The median rent in the U.S. is currently substantially higher than the median home loan payment, meaning your rent check may be eating up more of your monthly budget than a mortgage payment would. Owning and personalizing your own property while building on your investment can also mean saving money each month.

Conclusion

Purchasing a home isn't always the best choice for everyone, but the current real estate climate makes right now a great time to consider the possibility. Now that you know the basics of homebuying, the best next step is to ask questions and get answers from us, your local mortgage professionals.

Contact us today to discuss your future as a homeowner.

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Security First Financial is a division of Primary Residential Mortgage, Inc. PRMI NMLS 3094. Branch NMLS ID# 385589. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Colorado – Regulated by the Division of Real Estate, UCCC #987701-016. Arizona – Arizona Department of Financial Institutions 0902614. Massachusetts – Licensed by the Massachusetts Division of Banks as a Broker and Lender as #MC3094. Florida - Florida Office of Financial Regulation MLD646. Texas - This office is licensed and examined by the Office of Consumer Credit Commissioner of the State of Texas. 

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