Buying a Home

Your Journey Starts Here With The Right Mortgage Strategy

Getting a Mortgage to Buy a Home In Parker, Castle Rock, Lone Tree, Denver, or Highlands Ranch

Buying a home in Colorado should be exciting and fun! With our unique real estate market you can sometimes make many offers before actually having your offer accepted.

Here are some key factors you should be prepared for:

  • If you are not a cash buyer, then you’ll want to get pre-approved. Contact us to get your pre-approval letter as this will greatly increase your chances of success. Generally, strong Realtors need you to be pre-approved before they’ll show you houses. That way if there are any issues that you’re not aware of, they can be addressed before you are under contract.
  • Don’t be surprised if homes you are bidding on end up selling for more than they are listed for. When this happens, we want you to be prepared.
  • One factor you should be educated on is the appraisal gap. If your offer is much higher than the asking price and the appraisal comes in lower than your offer, then you are responsible for covering this difference. You may need to bring the difference to the closing table in cash or we may be able to structure your purchase with very little change to your down payment and cash to close.

At Journey Home Lending we work well with Realtors and their buyers to help with the challenges of buying a home in continually changing real estate markets. We will work with you to obtain a pre-approval letter before you start shopping for a home. Plus we will create a Custom Loan Strategy and video to help you choose the best loan strategy to meet your current needs and your long-term financial goals. To get this process started today, call us at 303-660-4210 or send us your request via our contact page.

First-Time Homebuyers

We love to work with first-time homebuyersCheck out our unique process to help first-time homebuyers achieve their goals.

Top 5 Reasons Why You Should Purchase Today

Have you pressed pause on your home-buying dreams, waiting on the sidelines as the real estate market evolves? While your reasons may be valid, it’s crucial to have all the facts to make an informed decision.

The primary concern is often “affordability,” driven by the surge in interest rates that may have impacted your buying power or eligibility. Rather than viewing this as a setback, let’s explore how this change in the market can actually be advantageous for you as a potential homebuyer.

In the video below, I delve into the ripple effect of the rising interest rate market, unveiling opportunities that have been absent for homebuyers in recent years. The intriguing interplay between affordability and inventory scarcity sets a unique and challenging dynamic in today’s market, a departure from the norm where these two forces rarely align to this degree.

Consider this: when affordability concerns surfaced in the past, the housing supply typically surged as buyers pulled back, as seen in the 2018/19 market.

The primary catalyst for the current pause in our housing market is the increase in interest rates from record lows, driving affordability challenges. Let’s shift our focus to the opportunities unfolding for you as a homebuyer today compared to just a short time ago.

Unlock The Secrets of Rate Buydowns For Savvy Homebuyers

In today’s dynamic real estate market, you’ve likely encountered the term “rate buydown” if you’re navigating the path to homeownership. However, like many prospective buyers, you may be wondering about the intricacies of this financing strategy, which one to choose, and how it can benefit you and your family.

Understanding Buydowns:

A buydown is a strategic mortgage financing approach that secures a lower interest rate for the initial years of your mortgage, potentially extending throughout its entire duration. For instance, a 2-1 buydown offers homebuyers a reduced interest rate for the first two years, while buydowns can also adopt a 3-2-1 structure.

Decoding 3-2-1 Buydown:

In a 3-2-1 buydown, you enjoy lower loan payments for the first three years. Over this period, the interest rate increases incrementally by 1% annually, with the full interest rate taking effect from the fourth year. The seller covers the difference in payments during the initial years as a subsidy.

Navigating the 2-1 Buydown:

A 2-1 buydown shares a similar structure with a 3-2-1 buydown but provides a discount for only the first two years. You’ll experience a 2% interest rate reduction in the first year and a 1% discount in the second year. Subsequently, your interest rate and monthly payments adjust, reaching the actual loan percentage rate in the third year. While you pay for the 2-1 buydown upfront at closing, the savings accrued in the initial two years often offset this cost.

Pros and Cons of Temporary Buydowns:

Determining whether a buydown aligns with your home purchase strategy hinges on factors such as mortgage amount, initial interest rate, potential interest savings, and projected future income. Your anticipated duration of stay in the home is also crucial in calculating the break-even point.

Pros:

*A buydown provides temporary relief by reducing your interest rate, resulting in lower monthly payments during the initial loan term.

*Opting for a buydown may enable you to secure the home for less than the seller’s listing price. 

*It can be advantageous for homebuyers anticipating future income growth.

Cons:

*Post buydown expiration, your monthly payment may rise unexpectedly.

*Managing monthly mortgage payments might become challenging if your income doesn’t increase as projected.

Questions? We'll Put You On The Right Path!

303-660-4210