Frequently asked questions
Mortgage questions? We have answers.
Everything you need to know about home loans, from getting started to closing day.
Getting Started
You're usually ready with stable income, a credit score around 620 or higher, savings for a down payment and closing costs, and total monthly debts (including the new payment) under about 43% of gross income. We can check where you stand before you start shopping.
Pre-qualification is a quick estimate from information you report. Pre-approval verifies your credit, income and assets, so sellers take it seriously. In competitive Colorado markets, get pre-approved before you make offers.
Pre-approval is often ready within a day or two once we have your documents. Many purchases close in 30–45 days; some close in as few as 21 with a complete file. Mountain properties can take longer because of specialized appraisals.
3: you get a Loan Estimate within 3 business days of applying. 7: closing can't happen until at least 7 business days after that. 3: you must receive your Closing Disclosure at least 3 business days before closing, and a new 3-day wait applies only if the APR, loan product or prepayment penalty changes.
Usually two years of tax returns and W-2s, 30 days of pay stubs, two to three months of bank statements and a photo ID. Self-employed borrowers also need business returns and a year-to-date profit and loss statement.
Down Payments & Costs
Conventional loans start at 3%, FHA at 3.5%, and VA and USDA at 0% for eligible buyers. Second homes need at least 10%, and jumbo loans usually 10–20%. Colorado's CHFA programs can help with the down payment.
Usually 2–5% of the price: lender fees, appraisal, title, recording and prepaid taxes and insurance. On a $500,000 home that's roughly $10,000–$25,000, and sellers can sometimes contribute.
Yes, with a VA loan if you're an eligible veteran or service member, a USDA loan in an eligible rural area, or down payment assistance. You'll still need money for closing costs unless the seller or a program covers them.
Private mortgage insurance is required on conventional loans with less than 20% down, typically 0.5–1% of the loan a year. You can ask to cancel it at 20% equity, and it ends automatically at 22% based on your original payment schedule.
Roughly $100,000–$115,000 a year, depending on rate, taxes and other debts. At 6%, principal and interest on $400,000 is about $2,398 a month; keeping housing near 28% of income means about $8,600 a month gross.
Credit & Qualification
Most conventional lenders look for 620+, FHA allows 580+ (or 500–579 with 10% down), VA lenders usually want about 620, and jumbo loans typically 700+. Higher scores get better pricing.
FHA is usually easiest: 580 credit with 3.5% down (or 500 with 10% down), and gift funds can cover the down payment. VA and USDA allow 0% down if you're eligible. We'll match you to the simplest fit.
DTI is your monthly debt payments, including the new mortgage, divided by gross monthly income. Most programs work best at 43% or below, and some allow up to about 50% with strong credit or reserves.
Yes. Lenders usually average two years of net income from your tax returns. If write-offs lower your taxable income, a bank statement loan can qualify you on deposits instead.
Mortgage inquiries within a short window (14–45 days, depending on the scoring model) count as a single inquiry. Comparing lenders has little effect on your score.
Loan Types & Refinancing
A 30-year has a lower payment; a 15-year builds equity faster and costs far less interest. On $400,000 at 6%, a 30-year is about $2,398 a month with roughly $463,000 in total interest; a 15-year at 5.25% is about $3,216 a month with roughly $179,000 in interest.
A fixed rate never changes. An ARM is fixed for 5, 7 or 10 years, then adjusts within caps. An ARM can make sense if you expect to sell or refinance before the fixed period ends.
A loan above your county's conforming limit: $832,750 in most Colorado counties in 2026 and up to $1,249,125 in Eagle County. Jumbo loans usually need 700+ credit, 10–20% down and more reserves.
Government-backed loans with 3.5% down and credit from 580. Mortgage insurance lasts the life of the loan with less than 10% down, or 11 years with 10% or more.
For veterans, active-duty service members and eligible surviving spouses: no down payment, no monthly mortgage insurance and limits on closing costs. A one-time funding fee applies unless you're exempt.
When a lower rate, a shorter term, removing mortgage insurance or taking cash out is worth the closing costs. Divide the costs by the monthly savings to find your break-even month, and compare that with how long you'll keep the loan.
Pay extra principal every month. On $400,000 at 6%, that means about $5,850 a month to finish in 7 years or $7,750 for 5 years. Check that your loan has no prepayment penalty first; most don't.
Colorado-Specific Questions
Often: appraisals with few comparable sales, HOA and condo reviews, well and septic, wildfire insurance, and seasonal access. We plan for them before you go under contract.
Yes, with at least 10% down. It must be a one-unit home you use for part of the year, and rental income can't be used to qualify. Heavier rental use needs investment or DSCR financing.
Investment loans typically need 15–25% down. DSCR loans qualify on the property's rental income instead of yours. Short-term rental rules vary by town, so check licensing before you buy.
Yes. Many clients are buying Colorado second homes or relocating, and the whole process can be handled remotely.
Still have questions?
Get personalized answers for your situation. Start a pre-approval, or call Andrew directly.