Why Home Loan Prequalification is a Must for Buying in Denver this SummerTo say that the Denver real estate market is hot, is an understatement. Growth in the Denver market is attracting businesses, young professionals, families and even retirees from around the country. With all of this growth comes a run on the housing market. Inventory is low and competition is high. If you are one of the thousands of hopeful homeowners looking to close on a property in Denver, home loan prequalification is a must!

Why is Prequalification so Important?
A shortage of inventory and a growing demand for housing in the city of Denver has created a highly competitive seller’s market. In fact, according to the Denver Post, “metro Denver’s low 3.2 percent unemployment rate, 1.1 percent income growth and strong home price appreciation put it first on Zillow’s ‘hottest housing markets’ list for 2016.”

If you are planning to shop for a home in the Denver area, you are likely to find that houses are flying off the market. Before you can even begin to shop for a home, you must first understand your price range. A home loan prequalification is a quick review of your financial situation, by a lender, which gives you an idea of the loan amount for which you qualify. You can use this information to narrow down your options and identify homes in your budget.

Why Get Preapproved?
Preapproval is the next step in securing a home loan. You will work with your lender to complete a mortgage application. In doing so, you will provide more information about your financial situation and your lender will complete a credit report analysis. Upon the completion of the application process, your lender can provide a specific mortgage approval amount and you may even be able to lock in an interest rate. Your lender will provide documentation of your loan approval amount. You can then share this document with your real estate agent and use it as proof of home loan preapproval during the negotiation process. The Denver housing market is competitive enough, you do not want to risk losing the chance to make an offer on your dream home. Get preapproved now!

Ready to find your dream home? Begin the home loan prequalification process today, right here at Banner Mortgage. Allow us to support you every step of the way. Let’s get started today!