Mortgage rates have doubled what they were in early 2022. Getting the lowest rate possible could mean the difference in being able to buy a home. Or at the very least, make it much more affordable. Many people are waiting for rates to come down. While interest rates are expected to come down, most experts agree that they’ll never return to the three or even four-percent range they were at previously. At June’s Team, we can help you buy Greeley CO real estate in any market. We are your trusted real estate team in Northern Colorado. 

Even though the interest rates are currently higher, you have a better opportunity to find your dream home. This is because there isn’t the same amount of competition with other buyers. Historically, once the interest rates drop, everyone will be jumping back into the market, and home prices will go up. That competitive market you saw in 2022 will come again. So when interest rates are up, it’s the time to have the buyer advantage. In this current market, there are things that a buyer can do to be eligible for the best rate available. 

How to get the Best Mortgage Rate in Greeley CO Real Estate

Obtaining the most favorable terms is based on the loan-to-value, your credit rating, and your ability to repay the mortgage. While lenders can impose their own underwriting criteria, the basic qualifying guidelines are identified as the 4 Cs:

• Capital – money and savings, plus other investments providing for down payment, closing costs, and reserves for unexpected expenses in the future.  It could also include gifts from family members, grants, and down payment assistance.
• Capacity – the ability to pay back the loan.  Lenders look at income, job stability, savings, monthly debt payments, and other obligations to approve a borrower for a mortgage.  They’ll ask for several years of tax returns, W2s, and current pay stubs.  Self-employed borrowers require additional documentation.  Some of the recurring debt can include car payments, student loans, credit card payments, personal loans, child support, alimony, and other debts which could include co-signing for another’s debt.
• Credit – your credit history and score exhibit your experience for paying bills and debts on time.  While there are minimum credit scores for different types of mortgages, the best rates are only available to borrowers with the best credit scores.  Credit ratings are established over time and borrowers need to improve their scores before they need to use them.
• Collateral … lenders look to the value of the home and other possessions when pledged as security for the loan.

Based on the Ability-To-Repay Rule, effective 1/10/2014, financial information must be supplied and verified. The borrower must have sufficient assets or income to pay back the loan. And, teaser rates can no longer hide a mortgage’s true cost. Even after a lender gives a loan approval to a borrower, they will generally run additional verifications a few days prior to the closing to make sure that nothing has changed that would affect their underwriting decision.

Preparing for a Mortgage: Credit Tips

The financial preparation for homebuyers begins long before they start looking at homes. They need to be aware of their credit by asking for copies of their credit reports from the three major reporting agencies: Experian, TransUnion, and Equifax. Congress mandated consumers be provided this free service through AnnualCreditReport.com.  Other websites may offer free services, but their real objective may be to encourage you to purchase additional services.

Once you’ve received the credit reports, read them to discover errors that could negatively affect your credit score.  The website will tell you the process of correcting the errors which includes notifying both the credit bureau and the reporting party of the error.

Most borrowers understand that payment history is the major contributor to a credit score; it is expected of borrowers to pay on time and as agreed.  Sometimes, borrowers are surprised to find out that if their borrowing approaches their available credit that it could actually hurt their score.

The credit utilization ratio is the percentage of credit used to that which is available.  If you had $10,000 credit available and your balance on a credit card was $2,500, the ratio would be 25%.  Ideally, lenders want your credit utilization to be below 25%.  Again, this could be one of the things you work on before you meet with a mortgage officer.

Choosing a Mortgage Professional

Once you have an accurate credit report and have saved for the down payment and closing costs, you’re ready to meet with a trusted mortgage professional who can take you through the process of preapproval.  They may be able to suggest things you can do to raise your credit score to be eligible for a lower mortgage rate.

All lenders are not the same and there is a significant difference between the online lenders who have limited counseling advice and working with a local mortgage broker you can discuss face-to-face what your situation is and if it can be improved.  

You may feel comfortable with more than one recommendation. Your agent will be able to supply you with lenders who they are familiar with from their experience in situations like yours.

June’s Team is the Best Realtor for Greeley CO Real Estate

At June’s Team, we are a premier residential real estate sales group serving Northern Colorado. With experience in the fast-growing and dynamic marketplace of not only Greeley but all of Northern Colorado, we provide excellent customer service from your first point of contact. We pride ourselves in serving our clients well and creating strong relationships so we remain their realtor for life. With us, you aren’t just another transaction, you become a part of the family. We are proud to have clients return to us because of the positive experiences they had with me and my team. 

Read some of our 5-star reviews from our happy clients

“June Lemmings and her team truly care about their client’s experience down to every detail. Each interaction we had with her and her team during our home buying journey was professional, informative, and kind. June’s knowledge and expertise made our experience smooth and easy. In addition to being dedicated to her clients, she gives back to her local community every chance she gets. Her impact in the Northern Colorado area extends far beyond the real estate industry. She is a role model for many in the community, especially up and coming female business owners and entrepreneurs. I highly recommend June and her team…they are the BEST!!” -Jocelyn

“When it comes to buying a property you have to be able to trust who you are working with. Dealing with June and her team through the whole process will make your life that much easier. The whole team is driven and very knowledgeable with what they do. If you are buying or selling talk to June’s team first!” -James

June Lemmings and June’s Team are your top choice for Greeley CO Real Estate

June’s Team at Keller Williams is well-established in the Northern Colorado community and serves clients in Greeley, Fort Collins, Loveland, Windsor, Eaton, and surrounding cities. We are the forerunners in Northern Colorado real estate and always have our client’s best interests at heart. Serving the residents of Northern Colorado is an honor and our love for the community is continuously growing. Two of our greatest values at June’s Team are to serve instead of sell and to never stop growing and striving to be the best. These are what set us apart from other realtors and truly create a positive change in real estate. Contact us today to get started or give June a call on her cell phone at 970-388-3692, or the office at 970-573-5791.