What areas in Colorado does Cedar Home Loan serve?

Cedar Home Loan serves all of Colorado with a specialty in mountain communities including Vail, Telluride, Boulder, Breckenridge, Steamboat Springs, Aspen, Frisco, Silverthorne, Edwards, Avon, Eagle, and Keystone.

What types of mortgage loans does Cedar Home Loan offer?

We offer conventional loans, jumbo loans, FHA loans, VA loans, construction loans, investment property loans, second home mortgages, and HELOCs.

How do I get pre-approved for a mortgage in Colorado?

Contact Cedar Home Loan at (970) 368-6135 or visit our website to start the pre-approval process. We can typically provide a pre-approval letter within 24-48 hours.

How do I know if I'm ready to buy a home?

You're likely ready to buy a home if you have stable income, a credit score of at least 620 (though 740+ gets the best rates), savings for a down payment (3-20% depending on loan type), and your total monthly debts including the new mortgage payment would be less than 43% of your gross income. We can help you assess your readiness with a free consultation.

What's the difference between pre-qualification and pre-approval?

Pre-qualification is a quick estimate based on self-reported information—it's a good starting point but doesn't carry much weight with sellers. Pre-approval involves a thorough review of your finances, credit, and documentation, resulting in a conditional commitment from a lender. In competitive Colorado markets like Vail and Telluride, a pre-approval letter is essential for serious buyers.

How long does the mortgage process take?

The typical mortgage process takes 30-45 days from application to closing. However, at Cedar Home Loans, we often close in as little as 21 days. Factors that can affect timing include property appraisal, title search, and how quickly you provide required documentation. Complex properties like mountain homes may take slightly longer due to specialized appraisals.

What documents do I need to apply for a mortgage?

You'll typically need: 2 years of tax returns and W-2s, recent pay stubs (30 days), 2-3 months of bank statements, government-issued ID, and documentation of any other income or assets. Self-employed borrowers need additional documentation including business tax returns and a profit/loss statement.

How much down payment do I need?

Down payment requirements vary by loan type: Conventional loans require 3-20% (20% avoids PMI), FHA loans require 3.5%, VA loans require 0% for eligible veterans, and USDA loans require 0% for eligible rural properties. For Colorado mountain properties and jumbo loans, expect 10-20% minimum. We can help you explore down payment assistance programs.

What are closing costs and how much should I expect?

Closing costs typically range from 2-5% of the loan amount and include lender fees, appraisal, title insurance, escrow deposits, and prepaid items like property taxes and insurance. On a $500,000 home, expect $10,000-$25,000 in closing costs. Some costs are negotiable, and in some cases, sellers may contribute to closing costs.

Can I buy a home with no money down?

Yes, certain loan programs allow zero down payment: VA loans for veterans and active military, USDA loans for eligible rural properties, and some state/local down payment assistance programs. Keep in mind that a larger down payment typically means better rates and lower monthly payments.

What is PMI and how can I avoid it?

Private Mortgage Insurance (PMI) is required on conventional loans when you put less than 20% down. It typically costs 0.5-1% of the loan amount annually. You can avoid PMI by making a 20% down payment, choosing an FHA loan (which has its own mortgage insurance), or using a piggyback loan structure. PMI automatically falls off when you reach 20% equity.

What credit score do I need to get a mortgage?

Minimum credit score requirements vary by loan type: Conventional loans typically require 620+, FHA loans require 580+ (or 500+ with 10% down), VA loans have no minimum but most lenders want 620+, and Jumbo loans typically require 700+. Higher scores (740+) qualify for the best interest rates. We work with borrowers across the credit spectrum.

How does my debt-to-income ratio affect my mortgage?

Your debt-to-income (DTI) ratio compares your monthly debt payments to your gross monthly income. Most lenders prefer a DTI of 43% or less, though some programs allow up to 50%. This includes your new mortgage payment, car loans, student loans, credit cards, and other debts. A lower DTI typically means better rates and easier approval.

Can I get a mortgage if I'm self-employed?

Yes! Self-employed borrowers can absolutely get mortgages. You'll typically need 2 years of tax returns showing consistent income, and lenders will use your net income (after business deductions) for qualification. Bank statement loans are also available for self-employed borrowers who have strong cash flow but complex tax situations.

Will shopping for mortgage rates hurt my credit score?

When you shop for mortgage rates within a focused period (typically 14-45 days depending on the scoring model), all the inquiries count as a single inquiry. This minimizes the impact on your credit score. We encourage you to compare rates—it's smart financial planning and won't significantly affect your credit.

What's the difference between fixed-rate and adjustable-rate mortgages?

A fixed-rate mortgage keeps the same interest rate for the entire loan term (typically 15 or 30 years), providing predictable payments. An adjustable-rate mortgage (ARM) has a lower initial rate that can change after a set period (e.g., 5/1 ARM adjusts after 5 years). ARMs can be smart if you plan to sell or refinance within the initial fixed period.

What is a jumbo loan?

A jumbo loan exceeds the conforming loan limits set by Fannie Mae and Freddie Mac. In most Colorado counties, loans above $766,550 (2024) are considered jumbo. High-cost areas may have higher limits. Jumbo loans typically require higher credit scores (700+), larger down payments (10-20%), and have slightly different qualification requirements. They're common for Colorado mountain properties.

What are FHA loans and who qualifies?

FHA loans are government-backed mortgages designed to help first-time and lower-income buyers. Benefits include lower down payments (3.5%), more flexible credit requirements (580+ score), and competitive rates. FHA loans require mortgage insurance for the life of the loan. They're great for buyers who need flexibility but may refinance later.

What are VA loans and what are the benefits?

VA loans are exclusively for veterans, active-duty military, and eligible surviving spouses. Benefits include no down payment required, no PMI, competitive interest rates, and limited closing costs. VA loans are one of the best mortgage products available. Cedar Home Loans is proud to help veterans secure these excellent benefits.

Are there special considerations for buying mountain property in Colorado?

Yes! Mountain properties often require specialized appraisals, may have unique HOA requirements, could have well/septic systems instead of municipal utilities, and may be in high-fire-risk zones requiring additional insurance. Access, snow removal, and altitude can also affect property values. Our team specializes in Colorado mountain financing and understands these nuances.

Can I finance a vacation home or second home in Colorado?

Absolutely! Second home and vacation property financing is available with slightly different terms than primary residences. Expect to put 10-20% down, and rates may be slightly higher. The property must be a reasonable distance from your primary home and suitable for year-round access. We finance vacation homes throughout Colorado's resort communities.

What about financing investment properties or short-term rentals?

Investment property loans typically require 15-25% down and have higher rates than primary residence loans. For short-term rentals (like Airbnb properties), some lenders allow projected rental income to help with qualification. Colorado has specific regulations for short-term rentals that vary by municipality—we can guide you through the financing options.

Does Cedar Home Loans work with out-of-state buyers?

Yes! Many of our clients are purchasing Colorado vacation homes or relocating from other states. We're licensed in Colorado and can work with you remotely through the entire process. We'll coordinate with local real estate agents and can recommend trusted professionals in your desired area.

When does it make sense to refinance?

Refinancing typically makes sense when you can lower your rate by at least 0.5-1%, want to switch from an ARM to a fixed rate, need to remove PMI, want to tap home equity (cash-out refinance), or need to change your loan term. Consider closing costs and how long you plan to stay in the home—aim to break even within 2-3 years.

What is a cash-out refinance?

A cash-out refinance replaces your current mortgage with a larger one, giving you the difference in cash. You can typically borrow up to 80% of your home's value. Common uses include home improvements, debt consolidation, or major expenses. The interest may be tax-deductible for home improvements—consult your tax advisor.

How much equity do I need to refinance?

Most refinance options require at least 20% equity to avoid PMI, though some programs allow refinancing with less. For cash-out refinancing, you typically need to maintain at least 20% equity after the new loan. If you have less equity, FHA Streamline or VA IRRRL programs may be options if you have those loan types.

Frequently Asked Questions

Mortgage Questions?
We Have Answers.

Everything you need to know about home loans, from getting started to closing day.

🏠Getting Started 💰Down Payments & Costs 📊Credit & Qualification 📋Loan Types 🏔️Colorado-Specific Questions 🔄Refinancing

🏠

Getting Started

💰

Down Payments & Costs

📊

Credit & Qualification

📋

Loan Types

🏔️

Colorado-Specific Questions

🔄

Refinancing

Still Have Questions?

Our mortgage experts are here to help. Get personalized answers to your specific situation.

Helpful Resources

🧮

Mortgage Questions?
We Have Answers.

Everything you need to know about home loans, from getting started to closing day.

🏠Getting Started 💰Down Payments & Costs 📊Credit & Qualification 📋Loan Types 🏔️Colorado-Specific Questions 🔄Refinancing

🏠

Getting Started

💰

Down Payments & Costs

📊

Credit & Qualification

📋

Loan Types

🏔️

Colorado-Specific Questions

🔄

Refinancing

Still Have Questions?

Our mortgage experts are here to help. Get personalized answers to your specific situation.

Helpful Resources

🧮

Mortgage Questions?
We Have Answers.

Getting Started

Down Payments & Costs

Credit & Qualification

Loan Types

Colorado-Specific Questions

Refinancing

Still Have Questions?

Helpful Resources

Mortgage Calculator

Get Pre-Approved

Read Our Blog

Mortgage Questions?
We Have Answers.

Getting Started

Down Payments & Costs

Credit & Qualification

Loan Types

Colorado-Specific Questions

Refinancing

Still Have Questions?

Helpful Resources

Mortgage Calculator

Get Pre-Approved

Read Our Blog

Mortgage Questions?We Have Answers.

Getting Started

How do I know if I'm ready to buy a home?

What's the difference between pre-qualification and pre-approval?

How long does the mortgage process take?

What documents do I need to apply for a mortgage?

Down Payments & Costs

How much down payment do I need?

What are closing costs and how much should I expect?

Can I buy a home with no money down?

What is PMI and how can I avoid it?

Credit & Qualification

What credit score do I need to get a mortgage?

How does my debt-to-income ratio affect my mortgage?

Can I get a mortgage if I'm self-employed?

Will shopping for mortgage rates hurt my credit score?

Loan Types

What's the difference between fixed-rate and adjustable-rate mortgages?

What is a jumbo loan?

What are FHA loans and who qualifies?

What are VA loans and what are the benefits?

Colorado-Specific Questions

Are there special considerations for buying mountain property in Colorado?

Can I finance a vacation home or second home in Colorado?

What about financing investment properties or short-term rentals?

Does Cedar Home Loans work with out-of-state buyers?

Refinancing

When does it make sense to refinance?

What is a cash-out refinance?

How much equity do I need to refinance?

Still Have Questions?

Helpful Resources

Mortgage Calculator

Get Pre-Approved

Read Our Blog

Mortgage Questions?We Have Answers.

Getting Started

How do I know if I'm ready to buy a home?

What's the difference between pre-qualification and pre-approval?

How long does the mortgage process take?

What documents do I need to apply for a mortgage?

Down Payments & Costs

How much down payment do I need?

What are closing costs and how much should I expect?

Can I buy a home with no money down?

What is PMI and how can I avoid it?

Credit & Qualification

What credit score do I need to get a mortgage?

How does my debt-to-income ratio affect my mortgage?

Can I get a mortgage if I'm self-employed?

Will shopping for mortgage rates hurt my credit score?

Loan Types

What's the difference between fixed-rate and adjustable-rate mortgages?

What is a jumbo loan?

What are FHA loans and who qualifies?

What are VA loans and what are the benefits?

Colorado-Specific Questions

Are there special considerations for buying mountain property in Colorado?

Can I finance a vacation home or second home in Colorado?

What about financing investment properties or short-term rentals?

Does Cedar Home Loans work with out-of-state buyers?

Refinancing

When does it make sense to refinance?

What is a cash-out refinance?

How much equity do I need to refinance?

Still Have Questions?

Helpful Resources

Mortgage Calculator

Get Pre-Approved

Read Our Blog

Mortgage Questions?
We Have Answers.

Mortgage Questions?
We Have Answers.