Why You Should Opt Out of Prescreened Credit Offershttps://www.optoutprescreen.com/When you apply for a mortgage or any type of loan, you expect to hear back from your lender. But what you might not expect is a flood of unwanted calls and offers from lenders you’ve never heard of. This happens because of prescreened credit offers, also known as trigger leads—and they can make your homebuying process much more stressful.In this article, we’ll explain why opting out of prescreened credit offers is essential and how you can do it easily using OptOutPrescreen.com.What Are Prescreened Credit Offers?Prescreened credit offers occur when major credit bureaus—TransUnion, Equifax, and Experian—sell your data to lenders and marketing companies after a hard credit inquiry. This is a common practice in the mortgage industry, but it often leads to an overwhelming number of calls, emails, and even mail solicitations from competing lenders.Why This HappensWhen you apply for a mortgage, credit agencies see your credit inquiry as an opportunity for other lenders to market similar loan products.Your information gets bundled and sold to hundreds, sometimes thousands, of call centers and lenders.These companies then bombard you with calls for weeks—even months—offering mortgage loans you never requested.This practice is not illegal (yet), but it’s widely criticized as a violation of privacy.The Downsides of Trigger LeadsWhile prescreened credit offers are marketed as a way to provide consumers with competitive options, they come with significant downsides:📞 Endless Unwanted CallsOnce your data is sold, you can expect dozens of daily calls from different lenders, often from unrecognizable or even spoofed numbers. This makes it harder to focus on choosing the right mortgage lender.⚠️ Higher Risk of ScamsNot all calls from trigger leads are legitimate. Some scammers pose as lenders, using aggressive tactics to pressure you into revealing sensitive information or making quick decisions.❌ Confusion & Decision FatigueToo many loan offers can make the mortgage process more overwhelming. Many first-time homebuyers end up frustrated or misled by lenders who use high-pressure sales tactics.🕵️ Your Data Is Being Sold Without Your ConsentEven though it’s legal, many consumers don’t realize that their personal financial information is being shared without their direct approval. Opting out protects your privacy.How to Opt Out of Prescreened Credit OffersThe best way to stop these intrusive solicitations is by opting out of prescreened credit offers through OptOutPrescreen.com. This is the official site supported by the Federal Trade Commission (FTC) and the Consumer Credit Reporting Agencies.✅ Steps to Opt OutVisit OptOutPrescreen.comChoose how to opt out5-year opt-out (Online)Permanent opt-out (Mail-in form required)Verify your identity by providing some personal information.Submit your request and confirm via email if necessary.🚨 Important: Opting out only prevents prescreened offers from being sold—it does not affect your credit score or your ability to apply for credit when you choose to.Will Congress Ban Trigger Leads?Due to growing concerns about consumer privacy, Congress is taking steps to ban trigger leads altogether.2023: Bills were introduced in Congress to restrict or eliminate the practice. (Source)2024: The Senate passed a bill banning trigger leads, and it’s now awaiting a vote in the House. (Source)2025 Budget: The proposed federal budget includes a measure to prohibit trigger leads nationwide. (Source)While legislative action is moving forward, these laws are not in effect yet—which means opting out remains the best way to protect yourself right now.Protect Your Privacy and Your SanityApplying for a mortgage should be an exciting step toward homeownership, not an invitation for unwanted calls and spam. By opting out of prescreened credit offers, you can:✅ Stop lenders from selling your personal data✅ Reduce unwanted phone calls and emails✅ Avoid scams and high-pressure sales tactics✅ Stay in control of your mortgage processAt 719 Lending, we believe in transparent, stress-free home financing. If you’re planning to buy a home in Colorado Springs, let’s talk about your mortgage options without the hassle of trigger leads.🔹 Need expert mortgage advice? Contact 719 Lending today! 🔹The post Why You Should Opt Out of Prescreened Credit Offers appeared first on 719 Lending.

Applying for a mortgage is an exciting step toward homeownership, but it’s important to approach the process carefully. Certain financial decisions made before and during the application process can impact your approval and loan terms. To help ensure a smooth experience, here are some key do’s and don’ts when applying for a mortgage.The Do’s✅ Get Pre-Approved EarlyA mortgage pre-approval gives you a clear picture of what you can afford and strengthens your position when making an offer on a home. It also helps uncover any potential financial hurdles ahead of time.✅ Maintain Stable EmploymentLenders look for steady income and employment history. If possible, avoid switching jobs during the mortgage process, as changes in income or job type could affect your loan approval.✅ Pay Bills on TimeYour credit score is a major factor in mortgage approval. Continue making all payments—credit cards, loans, utilities—on time to avoid any negative impact on your credit report.✅ Save for Closing Costs and Unexpected ExpensesBeyond the down payment, buyers should budget for closing costs, home inspections, and potential maintenance expenses after moving in. Having extra savings can provide peace of mind.✅ Keep Financial Documents OrganizedLenders will request income verification, tax returns, and bank statements. Keeping these documents ready will help speed up the approval process.The Don’ts🚫 Make Large PurchasesAvoid buying expensive items such as cars, furniture, or electronics on credit. Large purchases can increase your debt-to-income ratio and affect your loan eligibility.🚫 Open or Close Credit AccountsApplying for new credit cards or loans can impact your credit score and raise red flags with lenders. Similarly, closing old accounts may lower your overall credit history length, which can negatively affect your score.🚫 Take on New DebtLenders assess your existing debt to determine your ability to handle a mortgage payment. Taking on additional debt during the process can lead to complications or even loan denial.🚫 Change Bank Accounts SuddenlyLenders review your financial history, so any unexplained transfers or new accounts could create delays in the underwriting process. Keep your banking activity consistent.🚫 Co-Sign for Someone Else’s LoanEven if you’re not making payments, co-signing increases your debt liability, which can affect your ability to qualify for a mortgage.Final ThoughtsApplying for a mortgage requires careful financial planning. By following these do’s and don’ts, you can avoid common pitfalls and improve your chances of securing the right loan for your needs. If you’re considering buying a home, speak with a mortgage professional to ensure you’re on the right path to approval.The post The Do’s and Don’ts of Applying for a Mortgage appeared first on 719 Lending.

Interest rates are one of the most important factors to consider when buying a home. They directly influence how much you’ll pay each month on your mortgage and, ultimately, how much home you can afford. When rates rise, it can affect your budget and decision-making process, so understanding their impact is essential.What Are Interest Rates and Why Do They Matter?Interest rates represent the cost of borrowing money from a lender. They determine how much you’ll pay in addition to the loan’s principal amount. Even small changes in rates can have a significant impact on your total borrowing costs over the life of the loan, which is why it’s important to pay close attention to market trends.The Effect of Rising RatesWhen interest rates go up, the cost of financing a home increases. This means that for the same budget, you may be able to afford less house than when rates were lower. Rising rates can also influence the housing market overall, often leading to fewer buyers competing for properties. While this can create opportunities for buyers, it also requires careful budgeting to ensure affordability.How to Prepare for Higher RatesGet Pre-Approved: Securing pre-approval from a lender helps you understand what you can afford and gives you an opportunity to lock in a rate, protecting you from future increases during your home search.Explore Loan Options: Some buyers may consider adjustable-rate mortgages (ARMs) or other loan products to manage costs in the short term.Focus on Your Budget: As rates rise, it’s important to evaluate what you’re comfortable spending and avoid stretching your finances. Prioritize long-term affordability over immediate desires.A Balanced PerspectiveWhile rising interest rates can feel like a challenge, they may also slow the pace of home price increases and reduce competition. This can create opportunities for buyers who are ready to make a move.The post How Rising Interest Rates Impact Your Homebuying Power appeared first on 719 Lending.

VA Loan Entitlement Options for Military CouplesAre you and your spouse both serving—or have served—in the military? In this post, we’ll explore how VA loan entitlement works for military couples. We’ll also cover key tips for maximizing benefits, especially if you’re looking to buy property in Colorado Springs or anywhere in Colorado. By the end, you’ll have a clear path forward and a trusted lender—719 Lending—ready to help.What Is VA Loan Entitlement?VA loan entitlement is the amount the Department of Veterans Affairs guarantees on a VA home loan. If you’re a veteran, active-duty service member, or qualifying spouse, this guarantee makes it easier to secure a loan with competitive interest rates and low or no down payment.Here’s what you need to know next:Primary Entitlement: A base portion of your entitlement, which typically covers up to a set amount determined by the VA.Bonus (Second-Tier) Entitlement: An additional layer of entitlement for those who have used part of their primary entitlement or still owe on a VA home loan.When two service members or veterans get a mortgage together, the rules can allow you to combine or split your entitlements, potentially expanding your purchasing power in the Colorado Springs real estate market.VA Loan Entitlement Options for Military Couples1. Separate Loan EntitlementsEach spouse may use their individual VA entitlement on separate homes. This route can be handy if:One spouse wants to buy a rental or investment property in Colorado with their own VA loan.You both plan to own separate properties in different locations.However, purchasing two homes at once requires financial readiness. Additionally, you will each need to qualify separately, so talk to a mortgage broker or a mortgage professional like 719 Lending first.2. Joint Entitlement on a Single PropertyMany couples choose to combine their entitlements to purchase one property. By pooling entitlement, you can:Potentially buy a higher-priced home than you could with just one VA loan.Share the responsibility of monthly payments, simplifying household budgeting.This is especially useful if you’re eyeing a larger home in Colorado Springs, a popular area for military families. Moreover, combining entitlements can offer flexibility in how much down payment (if any) you need.3. Reusing EntitlementIf one spouse already owns a VA-financed home, you might still have options:Restore Entitlement: When you sell or refinance a home purchased with a VA loan, you can often restore your entitlement for future use.Use Unused Entitlement from the Other Spouse: If your spouse has untouched VA entitlement, you could use that for your next property.Tips to Maximize Your VA Entitlement TogetherPlan for the Long TermDecide if you want one large home or separate properties.Factor in whether you might be stationed elsewhere in Colorado or beyond.Monitor Your Credit 2. A healthy credit score can help you secure better rates.2. Pay down high-interest debts if possible.Leverage Bonus Entitlement 3. If you still owe on an existing VA loan, you might tap into second-tier entitlement for another home.3. This can be valuable if you need to relocate and keep your existing property as a rental.Aim for Pre-Approval 4. A quick route to clarity is getting pre-approved for a VA loan.4. This shows sellers in a busy Colorado Springs real estate market that you’re a serious buyer.Steps to Secure a VA Loan as a Military CoupleGather Your DocumentsDD Form 214 (if separated from service)Certificate of Eligibility (COE) for each spouseRecent pay stubs, bank statements, and W-2sApply for Your COE(s) 2. You can request a Certificate of Eligibility through the VA’s eBenefits portal or by mail.2. Each spouse must apply individually if both plan to use their entitlement.Consult With a Loan Officer 3. Talk to 719 Lending, a Colorado-based mortgage lender.3. We’ll review your finances, explore entitlement options, and discuss pre-approval.Find Your Home 4. Work with a local real estate agent who understands VA requirements.4. Look for properties that meet VA guidelines—Colorado Springs has a variety of VA-friendly homes.Close on Your Loan 5. Sign final documents and finalize the loan.5. Expect a fast, efficient process if all your documents are in order.Why VA Loans Are Great for Colorado SpringsColorado Springs is not just beautiful—it’s also home to many military installations. That means VA loans are a popular choice in the area. Thanks to the unique benefits of VA loans:No Down Payment: Work with a mortgage broker to purchase a home in Colorado Springs without needing a large upfront payment.No Private Mortgage Insurance (PMI): Save monthly by skipping PMI costs.Flexible Credit Requirements: VA loans often offer more lenient credit standards compared to conventional loans.Additionally, the entire state of Colorado attracts service members seeking scenic landscapes, outdoor adventures, and strong veteran communities.FAQ: VA Loan Entitlement for Couples1. Do both spouses have to be veterans to use a joint VA loan? Not always. One spouse must be an eligible veteran or service member. Sometimes, a non-veteran spouse can be part of the loan, but the VA entitlement calculation might differ.2. Can we each use our VA entitlement on one property at the same time? Yes. Many couples combine entitlements to afford a pricier home, or they use separate entitlements if they plan to buy multiple properties.3. What if we get stationed in another part of Colorado? You could convert your home in Colorado Springs into a rental if you still meet occupancy requirements. You might also look into reusing or restoring your entitlement for your next home purchase.4. How do we restore entitlement if we want to buy again later? Typically, selling or refinancing your existing VA-financed home can free up your entitlement for future use. Ask 719 Lending for personalized guidance on your next steps.5. Is it hard to qualify for a VA loan as a military couple? It’s often simpler than many people think. A stable income, reliable credit, and an acceptable debt-to-income ratio can set you up for success.Ready to Take the Next Step?If you and your spouse are exploring VA loan entitlement options in Colorado Springs or anywhere in Colorado, we can help.Need more info? Check out our Home Loan Options to see how 719 Lending can tailor a VA loan to your unique needs.Speak to a Local Expert Contact 719 Lending today. Our dedicated mortgage broker professionals will guide you from pre-approval to closing—and help ensure you maximize your VA loan benefits.Additional ResourcesU.S. Department of Veterans Affairs – VA Home Loan BasicsConsumer Financial Protection Bureau – Mortgage ResourcesHUD – Fair Housing InformationWhether you’re first-time buyers or seasoned homeowners, VA loan entitlement offers powerful advantages for military couples in Colorado Springs. Let 719 Lending make your homeownership journey smooth, rewarding, and perfectly aligned with your military lifestyle. The post VA Loan Entitlement Options for Military Couples appeared first on 719 Lending.

Wondering how non-taxable income factors into your mortgage approval? In this post, we’ll explain what “grossing up” income means, why it matters, and how it’s handled differently by various loan programs in Colorado. Whether you’re exploring Colorado Springs real estate or just want to strengthen your application, here’s everything you need to know—and how 719 Lending can help.—## What Is Grossing Up Income?“Grossing up” income refers to adjusting non-taxable income sources upward to their equivalent “pre-tax” amount. Since lenders typically look at gross (before-tax) income when qualifying borrowers, grossing up helps align your non-taxable income—such as certain Social Security benefits, disability income, or child support—with the same standard that taxed income receives.Here’s what you need to know next: **Why Do It?** If your income isn’t taxed, your actual take-home pay is relatively higher than a typical wage earner’s. Grossing up levels the playing field. **Who Benefts?* Anyone receiving non-taxable income could qualify for a larger mortgage loan or better debt-to-income ratio, especially in competitive markets like Colorado Springs.—## When Should You Consider Grossing Up Your Income?Grossing up can make sense if you:– Receive Social Security retirement or disability benefits– Have certain types of military allowances– Receive child support or public assistance– Collect other proven tax-exempt income sourcesBecause many of these types of income are common for homeowners and homebuyers in Colorado, local mortgage professionals often see borrowers who can benefit from this option. However, the rules differ depending on the loan program.—## How Does Grossing Up Work?In a nutshell, you take the non-taxable portion of your income and apply a specific percentage to determine the “grossed-up” figure. Here’s a quick example:1. **Non-Taxable Income**: $1,000 per month.2. **Gross-Up Percentage**: Depends on the loan program (often between 15% and 25%).3. **Grossed-Up Amount**: $1,000 + ($1,000 x Gross-Up %) = Qualifying Income.Because each loan program has its own guidelines, the exact gross-up calculation can vary. That’s why it’s crucial to work with an experienced mortgage broker or loan officer—like our team at 719 Lending.—## Different Guidelines by Loan Program### Conventional Loans (Fannie Mae and Freddie Mac)Fannie Mae and Freddie Mac’s approach may seem more complex and **often results in a smaller overall boost** to your income than FHA or VA guidelines. In practice, you might see:– **15% Non-Taxable Portion for Social Security:** Fannie and Freddie typically allow you to designate 15% of Social Security income as automatically non-taxable, no additional documentation required.– **25% Gross-Up on the Non-Taxable Portion Only:** If $150 is the non-taxable portion, you can then increase that portion by 25% (which amounts to $37.50). Consequently, the total monthly income would be $1,037.50 instead of $1,150 you might get under a more direct 15% model.– **Result:** You gain a smaller increase—often around 2–3% of the total, rather than a flat 15% of your entire income.This means **conventional loans** may offer less flexibility on grossing up. If you’re relying heavily on non-taxable income and want a bigger boost, an FHA or VA loan might be more advantageous.The post Grossing Up Income for a Mortgage appeared first on 719 Lending.

Buying your first home is an exciting milestone, but it can also feel overwhelming. As a first-time buyer, you’re likely navigating unfamiliar territory with a lot of questions about the process. To help you start your homeownership journey with confidence, here are five tips to keep in mind.1. Start with a BudgetBefore you start searching for homes, take a close look at your finances. Determine how much you can comfortably afford for your monthly mortgage payment, including taxes and insurance. Don’t forget to factor in additional costs like utilities, maintenance, and closing costs. Having a clear budget will help you avoid overextending yourself and set realistic expectations.2. Get Pre-Approved for a MortgageGetting pre-approved is a critical first step in the home-buying process. A pre-approval shows sellers that you’re a serious buyer and gives you a clear idea of how much you can borrow. It also helps streamline the closing process once you’ve found the right home. Speak to a mortgage professional early to explore your loan options and get pre-approved.3. Prioritize Your Needs vs. WantsWhen buying your first home, it’s easy to get caught up in the excitement of features like granite countertops or walk-in closets. However, focus on what’s truly essential: location, number of bedrooms, and overall affordability. Make a list of your “must-haves” versus “nice-to-haves” to guide your search.4. Work with Experienced ProfessionalsYour real estate agent and mortgage professional are your greatest allies during this process. They’ll guide you through market trends, help you negotiate offers, and ensure you’re making informed decisions. Don’t hesitate to ask questions or lean on their expertise.5. Be Prepared for Unexpected CostsBuying a home involves more than just the down payment. Be prepared for expenses like home inspections, appraisals, and moving costs. Building a small cushion in your budget can help you avoid surprises and stay on track financially.The post 5 Tips for First-Time Homebuyers appeared first on 719 Lending.

For many homeowners, building equity is one of the most rewarding aspects of owning a property. Equity represents the portion of your home that you truly own—the difference between your home’s market value and what you owe on your mortgage. Understanding how equity works and its potential benefits can empower you to make smart financial decisions.What Is Home Equity?Home equity grows in two main ways:Paying Down Your Mortgage: With each mortgage payment, a portion goes toward reducing your loan’s principal balance, increasing your equity.Appreciation: Over time, your home’s market value may increase due to factors like market demand and neighborhood improvements, further boosting your equity.For example, if your home is worth $300,000 and you owe $200,000 on your mortgage, your equity is $100,000.Why Is Building Equity Important?A Source of Wealth: Your home equity is a significant financial asset. As it grows, it contributes to your overall net worth and provides financial stability.Access to Funds: Equity can be used as a resource for major expenses. Through options like a Home Equity Line of Credit (HELOC) or a cash-out refinance, you can borrow against your equity to fund renovations, pay for education, or consolidate high-interest debt.Financial Security: In the long term, building equity can provide a safety net. Whether you sell your home to access cash or use your equity to downsize in retirement, it offers flexibility and peace of mind.Higher Returns on Investment: If home values rise, your equity grows without any additional effort on your part. This can lead to significant returns when it’s time to sell.How to Build Equity FasterMake Extra Mortgage Payments: Applying extra money to your principal balance can accelerate equity growth.Choose a Shorter Loan Term: A 15-year mortgage builds equity faster than a 30-year loan due to higher monthly principal payments.Invest in Home Improvements: Renovations that increase your home’s value can also boost equity.Building equity in your home is one of the smartest financial moves you can make. By managing your mortgage wisely and investing in your property, you can create long-term wealth and financial flexibility. If you’re interested in strategies to maximize your equity, reach out to a mortgage professional today.The post The Importance of Building Equity in Your Home appeared first on 719 Lending.

First Time Home Buyer EssentialsTaking the leap into homeownership is an exciting journey. Whether you’re a first-time homebuyer in Colorado Springs or anywhere else in Colorado, having the right knowledge can simplify the process. This guide will help you understand how to qualify for different mortgage and loan options, manage closing costs, and maintain a smooth path toward owning your first home.Understanding the Home Buying ProcessThe home buying process can be complex and overwhelming, especially for first-time homebuyers. It’s essential to understand the steps involved in buying a home to make informed decisions and avoid costly mistakes. Here’s a breakdown of the home buying process:Pre-approval: Start by getting pre-approved for a mortgage loan. This involves providing your financial information to a lender, who will then determine how much you can afford. A pre-approval not only gives you a clear budget but also makes you a more attractive buyer to sellers.Home search: Work with a real estate agent to find a home that meets your needs and budget. Consider factors such as location, size, condition, and amenities. Remember, some first-time homebuyer programs may have specific requirements regarding the property’s location or condition.Offer and negotiation: Once you find a home you like, make an offer and negotiate the terms of the sale with the seller. This may include the purchase price, closing costs, and any necessary repairs. Your real estate agent can help you craft a competitive offer.Inspections and due diligence: Conduct inspections and due diligence to ensure the home is in good condition and there are no major issues. This step is crucial to avoid unexpected expenses down the line.Closing: Finalize the sale by signing the mortgage documents and transferring the ownership of the property. Be prepared to cover closing costs, which can include fees for appraisals, titles, and more. If you have closing cost assistance, ensure you know exactly how those funds will be allocated before signing.Understanding Your Financial PositionBefore you start searching for a home or scheduling property tours, it’s crucial to evaluate your financial health. This sets the stage for every step that follows. Home loans are a crucial financial tool for first-time homebuyers, helping them navigate the mortgage process effectively.Credit Score and IncomeAim for a solid credit score to secure better interest rates.Review your household income to see if you qualify for special loan programs or first-time homebuyer assistance.Down Payment and SavingsWhile many people assume they need 20% down, various mortgage programs can require less.Boost your savings well in advance to help cover the property purchase itself, as well as closing costs and potential moving expenses.Debt-to-Income Ratio (DTI)Lenders typically prefer a DTI below 43%. Knowing your DTI helps determine which loan offers might work best for you.Individual Development AccountSome first-time buyers can benefit from an individual development account, which can provide matching funds for your down payment or closing fees.If you’re unsure where to start, the Consumer Financial Protection Bureau (CFPB) offers guidance on budgeting, loans, and credit. This will help you determine how much money you can pay upfront and which lender may be your best fit.Checking Your Credit Report and ScoreYour credit report and score play a significant role in determining your eligibility for a mortgage loan and the interest rate you’ll qualify for. Here’s how to check your credit report and score:Obtain a credit report: You can request a free credit report from each of the three major credit reporting agencies (Experian, TransUnion, and Equifax) once a year. This will give you a comprehensive view of your credit history.Review your credit report: Carefully review your credit report for any errors or inaccuracies. Dispute any discrepancies you find, as they can negatively impact your credit score and your ability to secure a favorable mortgage loan.Check your credit score: Your credit score is a three-digit number that represents your creditworthiness. A good credit score is typically 700 or higher. Knowing your score can help you understand what interest rates you might qualify for.Improve your credit score: If your credit score is low, take steps to improve it. Pay your bills on time, reduce your debt, and avoid new credit inquiries. Improving your credit score can help you secure a better interest rate on your mortgage loan.Getting Pre-Approved for a MortgageA pre-approval strengthens your offer and shows sellers you’re serious about buying. At 719 Lending, we aim to streamline the pre-approval process to give you a clear picture of your budget. Key points include:Financial Review: We assess your income, credit score, and existing debts to determine which mortgage program suits you best.Loan Options: Loan programs vary—Conventional, FHA, VA, USDA—and each can be tailored to first-time homebuyers or existing homeowners.Local Expertise: Our deep knowledge of the Colorado Springs market helps ensure you find a property that meets program guidelines and suits your lifestyle.While pre-approval doesn’t lock you into a loan, it clarifies what monthly payments you can afford.Exploring First-Time Homebuyer Programs and AssistanceMany first-time homebuyers are surprised by the variety of assistance options available. These can help manage your overall payment structure, especially if you have a lower income.Time Homebuyer ProgramsPrograms designed for first-time buyers often include reduced down payment requirements and may lower your closing fees. Some include a forgivable loan component if you meet certain conditions, such as living in the home for a set period.Closing Cost AssistanceClosing costs typically range from 3% to 6% of the purchase price. If your household income meets certain criteria, you may qualify for programs that help cover these expenses.Mortgage Programs for Special CircumstancesCertain loans are designed for lower-income or higher-debt applicants, or those with limited savings. Government agencies like the U.S. Department of Housing and Urban Development (HUD) offer programs and guidance to keep housing affordable.Median Income ConsiderationsMany programs compare your income against local median income levels. Being at or below the median can unlock more assistance or better loan terms.If you’re not sure which programs you might be eligible for, reach out to 719 Lending. We’ll review your application details to find a program that fits your needs.Narrowing Your Property SearchFinding the right property can feel overwhelming. We can help you focus on areas that fit both your budget and any program requirements.Location and City Limits: Some assistance programs apply only if the property is located within specific city limits. This can impact your home search if you hope to leverage closing cost assistance.Property Features: Decide if you need multiple bedrooms, a large yard, or special features like solar panels. Make sure the purchase aligns with your lifestyle and budget for monthly payments.Existing vs. New Builds: Consider whether you prefer a move-in-ready home or new construction. New builds may come with builder incentives; existing homes might be more budget-friendly.The Loan, Down Payment, and Payment StructureFinancial considerations often create the most anxiety for first-time homebuyers. Here’s what you need to know:Loan TypesConventional Loan: Typically requires a higher credit score, but the down payment can be as low as 3% for those who qualify.FHA Loan: Government-backed, often ideal for buyers with modest incomes or lower credit scores.VA Loan: Available to eligible veterans, often with zero down payment.USDA Loan: Designed for rural or semi-rural locations; some applicants can qualify with zero down if they meet eligibility requirements.Monthly PaymentsYour monthly payment usually includes principal, interest, taxes, and insurance. Make sure your payment stays within comfortable limits to avoid potential foreclosure risks.Interest Rates and TermsA small change in interest rate can significantly affect your loan’s total cost. Your lender will help you compare fixed versus adjustable mortgage terms.Borrower ProtectionsIf any part of the loan agreement seems confusing, don’t hesitate to ask for clarification.Down the road, if you decide to refinance to lower your interest rate or change your payment terms, 719 Lending can walk you through that process too.Understanding Down Payment and Closing CostsDown payment and closing costs are two significant expenses associated with buying a home. Here’s what you need to know:Down payment: A down payment is the amount of money you pay upfront when buying a home. The minimum down payment required varies depending on the type of mortgage loan. For instance, FHA loans may require as little as 3.5%, while conventional loans might require a higher percentage.Closing costs: Closing costs are fees associated with the home buying process, such as title insurance, appraisal fees, and loan origination fees. These costs can range from 2% to 5% of the purchase price. It’s important to budget for these expenses to avoid any surprises at closing.Down payment assistance: Some mortgage programs offer down payment assistance, such as grants or forgivable loans, to help with the down payment. These programs can be a great resource for first-time homebuyers who may not have substantial savings.Closing cost assistance: Similarly, some mortgage programs offer closing cost assistance, such as grants or credits, to help cover closing costs. These programs can significantly reduce the financial burden of purchasing a home.Avoiding Foreclosure and Maintaining HomeownershipOnce you’ve owned your home for a while, it’s vital to stay on top of monthly payments:Budgeting: Keep a reserve for unexpected costs to ensure timely payments.Insurance and Maintenance: Regularly review your homeowner’s insurance and maintain the property to protect your investment.Counseling Resources: Many local agencies offer free counseling to homeowners worried about falling behind.Government Support: HUD and local departments may offer additional assistance if you’re facing financial hardships.If issues arise, contact your lender or loan servicer early to discuss potential loan modifications, forbearance, or other foreclosure-prevention options.Making a Confident Offer and ClosingWhen you’ve found the right home, it’s time to finalize the purchase:Crafting a Strong OfferWork with your real estate agent and 719 Lending to develop a compelling purchase offer. Consider including inspection or financing contingencies for added protection.Home Inspection and AppraisalA professional inspection can uncover issues you might not notice. You can also negotiate repairs or credits before finalizing the deal if needed.Closing CostsClosing costs include fees for appraisals, titles, and more. If you have closing cost assistance, ensure you know exactly how those funds will be allocated before signing.Final DocumentationConfirm that all funds are ready for the closing date.Provide all documents your lender requests so that the signing process goes smoothly.Throughout each phase, 719 Lending will guide you to ensure you meet eligibility requirements and maintain momentum toward your goal of homeownership.Tips and Resources for First Time HomebuyersAs a first-time homebuyer, it’s essential to be prepared and informed throughout the home buying process. Here are some tips and resources to help you:Get pre-approved: Get pre-approved for a mortgage loan before starting your home search. This will give you a clear budget and make you a more attractive buyer to sellers.Check your credit: Check your credit report and score to ensure you’re eligible for a mortgage loan. Address any issues that may negatively impact your credit score.Research mortgage programs: Research mortgage programs, such as FHA loans and VA loans, to determine which one is best for you. Each program has different requirements and benefits, so it’s important to find the one that fits your needs.Work with a real estate agent: Work with a real estate agent who is experienced in working with first-time homebuyers. They can guide you through the process and help you find a home that meets your needs and budget.Take advantage of down payment assistance: Take advantage of down payment assistance programs, such as grants or forgivable loans, to help with the down payment. These programs can make homeownership more accessible for first-time buyers.Final Thoughts on the Path to HomeownershipBecoming a homeowner is a milestone many aspire to reach. With the right mortgage program, down payment strategy, and preparation for closing costs, you’ll be well on your way. By researching first-time buyer resources, exploring specialized loan options, and working with an experienced lender like 719 Lending, you can confidently move toward owning your first home.Ready to begin? Contact us at 719 Lending, or check out our Home Loan Options to get started. Our team can help tailor the right loan to match your income and guide you through each step of the homebuying process.DisclaimerThis blog post is for informational purposes only and does not constitute financial advice. Please consult a licensed mortgage professional for individualized guidance. NMLS#1601989. Equal Housing Lender. We comply with the Fair Housing Act and all other applicable laws.Note: Rates, program details, and eligibility can vary. Always verify current regulations with official sources like the Colorado.gov site or HUD guidelines before making any purchase decisions.The post First Time Home Buyer Essentials appeared first on 719 Lending.

For veterans, active-duty service members, and eligible surviving spouses, a VA loan offers a powerful way to achieve homeownership. Backed by the U.S. Department of Veterans Affairs, VA loans are designed to make buying a home more accessible for those who have served our country. Here’s what makes this program unique and how it can benefit you.1. No Down PaymentOne of the most attractive features of a VA loan is the ability to purchase a home with no down payment. This benefit eliminates one of the largest barriers to homeownership, making it easier for veterans and service members to get into a home without the need for years of saving.2. No Private Mortgage Insurance (PMI)Unlike conventional loans that require private mortgage insurance (PMI) if the down payment is less than 20%, VA loans do not require PMI. This can save you hundreds of dollars per month, reducing the overall cost of homeownership.3. Competitive Interest RatesVA loans often come with lower interest rates compared to other loan types. Since the VA guarantees a portion of the loan, lenders are able to offer favorable terms, saving borrowers thousands of dollars over the life of the loan.4. Flexible Credit RequirementsVA loans are more lenient when it comes to credit scores. While individual lenders set their own standards, borrowers with less-than-perfect credit may still qualify, making homeownership more attainable for a broader range of veterans.5. Limited Closing CostsThe VA limits the amount of closing costs lenders can charge, ensuring borrowers aren’t overwhelmed with excessive fees. Additionally, sellers can pay part or all of the closing costs in some cases, further reducing out-of-pocket expenses.6. Refinance OptionsVA loans also offer refinancing options, such as the Interest Rate Reduction Refinance Loan (IRRRL), which can help borrowers reduce their interest rate or switch from an adjustable-rate mortgage to a fixed-rate loan with minimal hassle.For those who qualify, VA loans provide significant financial advantages and a streamlined path to homeownership. If you’re considering buying a home or refinancing with a VA loan, reach out to a mortgage professional to explore how this benefit can work for you.The post Understanding the Benefits of a VA Loan for Veterans and Service Members appeared first on 719 Lending.

Are you wondering how to buy a house with low income in Colorado Springs or anywhere in Colorado? It might feel overwhelming at first, but there are specific loan programs, down payment solutions, and strategies that can turn your homeownership goals into reality—even if your income is limited. In this guide, we’ll explain how to approach a mortgage, reduce closing costs, and secure payment assistance programs so you can purchase a property without straining your finances.1. Understand the Basics of Low Income Home BuyingCan I Buy a House with Low Income?Buying a house with low income can be challenging, but it’s not impossible. With the right strategies and resources, you can overcome the obstacles and achieve your dream of homeownership. Here are some key takeaways to consider:Assess Your Financial Situation: You can buy a house with low income, provided you can reasonably afford the mortgage, maintenance, and other expenses associated with owning a home. Start by evaluating your current financial status and understanding your limits.Understand Your Debt-to-Income (DTI) Ratio: Your DTI ratio is a key measure of how your income stacks up against your mortgage and other debt payments. A lower DTI ratio improves your chances of qualifying for a mortgage.Explore Loan Options: Low income can increase your DTI ratio, limiting some loan program options, but it doesn’t mean you can’t buy a home. Programs like FHA loans and USDA loans are designed to help lower income borrowers.Check the Area Median IncomeMany loan programs look at your income in comparison to the area median income. Staying at or below a certain threshold could make you eligible for down payment assistance or a favorable loan through government-backed programs. If your income falls into the low or moderate range, don’t assume you’re unable to buy a house—instead, learn about resources designed for low income home buyers and low income borrowers.Build Credit and Meet Eligibility RequirementsA solid credit score helps you qualify for better mortgage interest terms. If you have lower credit scores, it’s still possible to find a loan that fits your situation, but you may need to focus on raising your score first. Make on-time payments, reduce debt, and limit new credit inquiries. Over time, these steps can help you afford a mortgage with more favorable terms.Seek Homebuyer EducationMany first time buyer or low income buying programs require a homebuyer education course. This course teaches budgeting, how to compare mortgage offers, and how to handle upfront expenses like a minimum down payment. Completing this training can also open doors to down payment assistance or payment assistance programs.2. Improve Your Financial SituationImproving your financial situation is crucial when buying a house with low income. Here are some steps to take:Pay Down DebtsPaying down debts is essential to improve your credit score and reduce your DTI ratio. Consider the following:Manage Your DTI Ratio: Lenders will examine your debt-to-income (DTI) ratio to assess how well you manage your current debts and your ability to take on more if approved for a mortgage. Aim for a DTI below 36%, although most lenders typically allow up to 43% and some as high as 50%.Reduce Outstanding Debts: Pay down your debts as much as possible to get within a desirable range before applying for a mortgage. This not only improves your DTI ratio but also boosts your credit score, making you a more attractive candidate for a loan.Create a BudgetCreating a budget is vital to understand how much house you can afford. Consider the following:Set a Realistic Budget: Mortgage professionals and financial experts have different schools of thought around what percentage of your income to budget for a mortgage. Historically, 30% was considered a good target, but the reality today is that the cost of housing usually requires a larger share.Evaluate Your Spending: Take stock of all your spending needs and establish a budget based on what you can comfortably afford. This includes not just the mortgage but also other expenses like utilities, maintenance, and property taxes.2. Explore Loan Options That Suit Low Income BorrowersFHA LoanAn FHA loan (insured by the Federal Housing Administration) offers lower down payment requirements, making it an attractive choice for low income families or individuals. You can often buy a house with as little as 3.5% down. However, mortgage insurance (MIP) typically applies for the life of the loan.USDA LoansIf you live in or near rural areas around Colorado Springs, USDA loans could be an option. The USDA loan is a financial program designed to assist moderate- and low-income borrowers in purchasing homes in rural areas. They frequently require zero down payment and provide competitive rates for low-income buyers. There are two types of USDA loans: the Single Family Housing Direct Loan and the Single Family Housing Guaranteed Loan. The eligibility criteria are based on income and location, with qualifying income limits being crucial for approval. Keep in mind, though, that a mortgage lender may charge mortgage insurance or similar fees to protect against default.VA LoanFor active duty service members, law enforcement officers who’ve also served, surviving spouses, or veterans, a VA loan can require no down payment at all. This benefit can drastically lower the money you need to buy a house and help you afford the monthly bills. VA loans are also known for offering lower interest rates.Payment Assistance ProgramsMany states and nonprofits provide payment assistance for low income households. These payment assistance programs may come as grants or second mortgage options that reduce your out-of-pocket money for a down payment. For instance, certain down payment assistance initiatives cover part of your closing costs too.Conventional Loans and Other Mortgage OptionsThough often seen as tougher for low income applicants, conventional loans can still be viable if you have a higher credit score or enough money saved. You might also consider HFA loans from local housing authorities, which are designed to make buy a house scenarios more feasible for moderate- and low income buyers.3. Budget for Down Payment and Closing CostsDown Payment EssentialsA strong down payment (ranging from 3% to 20% of the purchase price) improves your chances of approval and can reduce your monthly mortgage payment. Low income buyers sometimes qualify for a minimum down payment far below traditional thresholds, thanks to payment assistance or a special loan product. That said, saving enough money for your down payment remains essential for long-term stability.Closing Costs MatterYou will also face closing costs, which can include appraisal fees, origination fees, and title charges. These expenses add up quickly, so plan to pay closing costs or seek programs that help you lower closing costs. By combining grants, down payment assistance, or a second mortgage for added support, you can manage these costs more easily.Upfront Expenses vs. Ongoing CostsBeyond the down payment and closing costs, factor in your future monthly mortgage payment, homeowner’s insurance, property taxes, and potential repairs. Setting aside money ahead of time helps you avoid financial stress once you move into your new home.4. Work with the Right Mortgage LenderMortgage Application ProcessSubmitting a mortgage application can feel intimidating, but a trusted local mortgage lender like 719 Lending will guide you step by step. Provide accurate documentation of your income, bank statements, and employment history. If you meet the eligibility requirements for certain loan programs, your lender will discuss those opportunities with you.Pre-Approval for ConfidenceA pre-approval letter shows sellers you’re committed and capable of buying. In Colorado’s competitive markets, it’s especially important to get pre-approved so you can act quickly when you find a property. At 719 Lending, we also explain any payment assistance programs and detail how much house you can safely afford.Shop Around for the Best Loan AmountComparing lenders ensures you get the best interest rate and mortgage product. Ask about the loan amount you qualify for and if you can secure lower interest rates for your scenario. Whether you’re purchasing single family homes, manufactured homes, or HUD homes, being informed about your options can help you finalize the purchase with confidence.5. Consider Special Programs and HUD Foreclosure HomesPurchase HUD Foreclosure HomesSome properties are listed as HUD foreclosure homes, which might be discounted for law enforcement officers, teachers, and other community roles under the Good Neighbor Next Door or Next Door initiatives. These programs support affordable housing by enabling qualified applicants to purchase at reduced prices.Fannie Mae and Freddie MacBesides FHA and USDA loans, consider low income–focused products from Fannie Mae and Freddie Mac. Fannie Mae’s HomeReady mortgage, for example, targets borrowers below the area median income. Freddie Mac’s Home Possible program can also help you buy a house with limited funds. Both offer flexible guidelines and can be especially helpful for low income buyers.Urban Development ResourcesIf you’re looking to buy in designated urban or suburban areas, local agencies might have specialized assistance. Consult housing authorities that focus on urban development to see if you qualify for targeted down payment grants or payment options that ease the burden of your monthly costs.7. Finding a HomeFinding a home that fits your budget and needs is crucial when buying a house with low income. Here are some tips to consider:Tips for Finding a HomeResearch Affordable Neighborhoods: Research neighborhoods and communities that offer affordable housing options. Look for areas where property values are within your budget.Work with an Experienced Real Estate Agent: Consider working with a real estate agent who has experience with low-income homebuyers. They can help you find properties that meet your criteria and guide you through the buying process.Look for Financial Assistance: Look for homes that are eligible for down payment assistance programs or other forms of financial assistance. These programs can significantly reduce your upfront costs.Negotiate the Price: Don’t be afraid to negotiate the price of the home or ask for repairs or credits. Sellers may be willing to lower the price or offer concessions to close the deal.Inspect Thoroughly: Make sure to inspect the home thoroughly before making an offer. A detailed inspection can reveal potential issues that might affect your decision or give you leverage in negotiations.By following these tips and strategies, you can increase your chances of buying a house with low income. Remember to stay patient, persistent, and informed throughout the process. With the right approach, you can find a home that fits your budget and meets your needs.6. Negotiate and Close on the PurchaseHome Inspection and RepairsBefore you finalize the purchase, invest in a home inspection to identify potential problems. Use the findings to negotiate repairs or request seller concessions—like help with closing costs. This negotiation phase can save you money and lower your monthly mortgage payment over time if the seller agrees to adjust the price.Afford Your Future HomePlan out how you’ll pay all housing expenses over time, from the mortgage to insurance and property taxes. If you realize the property is too costly, keep searching. It’s better to wait than to stretch beyond what your income can handle.Final StepsOnce you and the seller agree on the terms, you’ll sign final documents during the underwriting process and officially take ownership of the house. By this point, your real estate agent and mortgage professional will ensure all loan conditions are met. Whether you use an FHA loan, USDA loans, or a VA loan, closing day is an exciting milestone in your homeownership journey.Frequently Asked QuestionsQ: How to buy a house with low income if I don’t have a large savings?A: Focus on down payment assistance or payment assistance. Many local or state programs help low income families reduce upfront expenses. You can also apply for an FHA loan or USDA loans that require little to no down payment.Q: What if I have to buy a house in a competitive area?A: Get a pre-approval from a reputable mortgage lender like 719 Lending. This demonstrates you’re financially ready, which can be crucial in a bidding war.Q: Can first responders or law enforcement officers get special help?A: Yes. The Good Neighbor and Next Door programs allow certain public service professionals to purchase HUD foreclosure homes at discounted rates. This can substantially lower your cost to buy a house.Final ThoughtsFiguring out how to buy a house with low income doesn’t have to be a roadblock. By checking eligibility requirements, learning from financial experts, and working with a trusted lender, you can secure a loan that fits your budget. Whether you’re eyeing single family homes, manufactured homes, or even HUD homes, there are multiple mortgage solutions—including payment assistance programs and down payment assistance—to help you manage the purchase successfully.Ready to move forward? Contact 719 Lending to discuss your mortgage goals and explore home loans that meet your specific needs. We’re here to help Colorado residents—from Colorado Springs to rural areas—find an affordable pathway to homeownership.DisclaimerThis blog post is for informational purposes only and does not constitute financial advice. Please consult a licensed mortgage professional for individualized guidance. NMLS#1601989. Equal Housing Lender. We adhere to Fair Housing laws and guidelines. Visit HUD.gov or Colorado.gov for additional information on affordable housing programs.The post How to Buy a House with Low Income appeared first on 719 Lending.

Creating a truly childproof-house can feel overwhelming. However, with the right baby proofing strategies, you can keep your child safe at every stage. This guide offers safety essentials to help you tackle potential hazards room by room, ensuring peace of mind for the whole family—whether you’re in Colorado Springs or elsewhere in Colorado. One crucial aspect is the necessity of using outlet covers to protect electrical outlets from curious toddlers, as these pose a significant risk for young children.Thinking of moving to a new, family-friendly home? 719 Lending (NMLS #1601989) can help you explore your mortgage options.1. Preparing for Childproofing1.1 When to Childproof Your HomeChildproofing your home is an essential step in ensuring the safety and well-being of your young kids. Ideally, you’ll start childproofing before your baby is born, or as soon as possible after birth. Early preparation allows you to:Identify potential hazards in your living space.Implement baby proofing solutions before your child becomes mobile.Regularly update measures as your child grows, ensuring a continuously child-safe environment.By proactively planning, you’ll have more time to create a secure space for your little explorer.1.2 Basic Safety Tips for a Childproof HomeCreating a child-safe environment starts with a few foundational steps:Install safety gates at the top and bottom of stairs to prevent falls.Anchor furniture and heavy appliances to walls to prevent tipping.Install window guards to discourage climbing and falling.Use outlet covers to prevent electric shocks and curious fingers in dangerous spots.Install cabinet locks to keep dangerous items like cosmetics, cleaning products, and medicines out of reach from young children.Keep sharp objects (knives, scissors) out of reach.Add corner guards to cover sharp edges on furniture or appliances.Use a living room babyproofing checklist to ensure you don’t miss anything.By following these initial safety tips, you’ll have a strong foundation for a secure and welcoming home for your young kids.2. Securing Exits and Entrances2.1 Safety GatesSafety gates are integral to house babyproofing, especially for small children. They help with blocking access to stairs and other hazards, reducing the risk of tumbles:Placement TipsInstall at both the top and bottom of stairs with a safety strap or hardware mount to prevent falls.Consider knob covers or child locks for doors leading outside.Living Room Babyproofing ChecklistAnchor furniture like bookcases and TV stands to the wall so heavy furniture doesn’t tip over.Apply corner guards to coffee tables or counters with sharp corners.Keep dangling cords tucked away from a curious toddler.2.2 Secure Exits and EntrancesSecuring your home’s exits and entrances includes doors and windows:Install safety gates near stairwells and doorways to limit a child’s access to off-limits areas.Use door locks or latches to prevent your child from wandering outside unsupervised.Consider window guards or stops to reduce the chance of falls from open windows.If you have sliding glass doors, a tension bar at the top can keep young kids from opening them.By addressing these points, you ensure your child stays safely inside and away from higher-risk areas.3. Furniture and Appliance SafetyEven seemingly stable items can pose significant risks if not secured properly. Following these steps keeps dangerous items out of reach:Secure FurnitureUse wall straps to prevent heavy furniture from tipping.Keep sharp objects locked away in cabinets or drawers.Maintain a safe sleeping environment for babies by keeping cribs free from various soft items, including stuffed animals, to prevent suffocation hazards.Appliance SafetyInstall corner guards on appliances with sharp edges (e.g., countertop ovens).Unplug appliances like food processors or blenders when not in use, and store them behind cabinet locks if possible.3.1 Window Guards to Prevent FallsWindows are often overlooked but can be incredibly hazardous:Install Window GuardsChoose guards sturdy enough to support your child’s weight.Ensure they have a reliable locking mechanism to prevent tampering.Place guards on any window accessible to a child.Secure the structural integrity of window frames and install metal window guards that secure into the sides of the window frame to prevent accidents involving children.Window TreatmentsUse cordless window coverings to avoid strangulation hazards.Update older window treatments and promptly address any lead paint concerns in older homes.Consider adding a safety latch for extra peace of mind.By securing and updating your windows, you create a more child-safe overall environment.4. Electrical Safety4.1 Use Outlet Covers to Prevent Electrical ShockElectrical safety is a crucial aspect of babyproofing your home. One of the most effective ways to prevent electrical shock is to use outlet covers. Outlet covers are designed to fit snugly over electrical outlets, preventing tiny fingers and objects from being inserted. This is especially important in homes with young kids, as they are naturally curious and may not understand the dangers of electrical outlets.When choosing outlet covers, look for ones that are tamper-resistant and meet the safety standards of your country. You can also consider installing outlet covers that have a built-in safety feature, such as a spring-loaded mechanism that prevents the cover from being removed by a child.In addition to outlet covers, it’s also important to keep cords and electrical wires out of reach of children. This can be done by securing cords with cord organizers or concealing them behind furniture. By taking these steps, you can significantly reduce the risk of electrical shock and create a safer environment for your child.4. Outlet CoversOutlet covers and electrical cords demand special attention to prevent shocks or a choking hazard:Types of CoversSliding or box-style outlet covers can be easier for adults to manage than small plastic plugs.If you store dangerous items (e.g., tools, gadgets) near outlets, consider magnetic locks or cabinet locks on adjacent drawers.Managing Electrical CordsKeep cords out of reach and unplug appliances in high-risk areas like the kitchen sink or laundry room.Use drawer locks or cable organizers to stash extra cords, reducing clutter that could tempt a child.5. Cabinet and Drawer SafetyCabinet and drawer safety is a crucial aspect of babyproofing your home. Cabinets and drawers can contain hazardous materials, sharp objects, and heavy items that can pose a risk to your child’s safety. In this section, we will discuss the importance of cabinet and drawer safety and provide tips on how to babyproof them.5.1 Baby Proof Cabinets and Drawers With Magnetic LocksMagnetic locks are a popular and effective way to babyproof cabinets and drawers. These locks use a strong magnetic field to keep the cabinet or drawer closed, preventing your child from accessing the contents. Here are some benefits of using magnetic locks:Easy to install: Magnetic locks are simple to install and require no drilling or screws.Adjustable: Magnetic locks can be adjusted to fit different types of cabinets and drawers.Secure: Magnetic locks provide a secure and reliable way to keep cabinets and drawers closed.Easy to use: Magnetic locks are easy to use and require no keys or combinations.To install magnetic locks, follow these steps:Choose the right lock: Select a magnetic lock that is suitable for your cabinet or drawer.Clean the surface: Clean the surface of the cabinet or drawer to ensure a strong magnetic bond.Apply the lock: Apply the magnetic lock to the cabinet or drawer, following the manufacturer’s instructions.Test the lock: Test the lock to ensure it is working properly.By implementing these measures, you can keep hazardous materials and sharp objects out of reach, ensuring a safer environment for your child.6. Kitchen SafetyThe kitchen is one of the most hazardous rooms in the home, especially for young children. Sharp objects, hot surfaces, and heavy appliances can pose a significant risk to your child’s safety. In this section, we will discuss the importance of kitchen safety and provide tips on how to babyproof your kitchen.6.1 Teach Your Child That Kitchen Utensils Aren’t ToysTeaching your child that kitchen utensils are not toys is an essential part of kitchen safety. Young kids may not understand the difference between a toy and a kitchen utensil and may be tempted to play with sharp objects or use them as toys. This can lead to serious injuries, such as cuts or burns.To teach your child that kitchen utensils are not toys, start by setting a good example. Show your child how to use kitchen utensils safely and responsibly, and explain the dangers of playing with sharp objects. You can also use visual reminders, such as a sign on the kitchen wall, to reinforce the message.It’s also important to keep kitchen utensils out of reach of children. This can be done by storing them in a high cabinet or on a hook that is inaccessible to your child. By teaching your child that kitchen utensils are not toys and keeping them out of reach, you can create a safer kitchen environment and reduce the risk of accidents.7. Bathroom Safety7.1 Babyproof the BathBathroom safety is a critical aspect of babyproofing your home. The bath is a particularly hazardous area, as it can be slippery and contains sharp objects and hot water. To babyproof the bath, start by installing a non-slip mat or stickers on the bottom of the bathtub. This will help prevent your child from slipping and falling.You should also install a faucet cover to prevent your child from turning on the hot water. Faucet covers are designed to fit over the faucet handle, preventing your child from turning it. You can also consider installing a thermostatic mixing valve, which regulates the water temperature to prevent scalding.In addition to these measures, it’s also important to keep the bathroom clean and clutter-free. This will help prevent your child from tripping or slipping on objects. You should also keep the bathroom door closed and install a safety latch to prevent your child from entering the bathroom unsupervised.By taking these steps, you can create a safer bathroom environment and reduce the risk of accidents. Remember to always supervise your child when they are in the bath, and never leave them unattended.6.2 Teach Your Child That Kitchen Utensils Aren’t ToysKitchen utensils, such as knives, forks, and spoons, can be hazardous if not used properly. It is essential to teach your child that kitchen utensils are not toys and should be used only for their intended purpose. Here are some tips on how to teach your child:Supervise: Supervise your child when they are using kitchen utensils to ensure they are using them safely.Explain: Explain to your child the purpose of each kitchen utensil and how to use it safely.Demonstrate: Demonstrate how to use kitchen utensils safely and correctly.Set boundaries: Set boundaries and rules for using kitchen utensils, such as not playing with them or using them as toys.By following these tips, you can help create a safe and secure environment for your child in the kitchen.5. Laundry RoomThe laundry room can hide multiple potential hazards:Cleaning ProductsStore detergents, bleach, and other cleaning supplies on a top shelf or behind locked doors, keeping them off limits.If you also store food processors or irons in this space, use a safety latch to keep tiny fingers away.Small Choking HazardsLoose buttons, coins, or detergent pods can easily become a choking hazard for young children.Inspect most drawers and floors regularly to clear away stray items.By tackling these areas, you’ll prevent children from encountering dangerous items lurking in the laundry room.6. Additional Tips & Final ThoughtsSharp ObjectsKeep knives and scissors secured in high drawers or behind child locks to protect your child from harm.Water HeaterSet your water temperature to around 120°F to keep your child from accidental burns.How Much Baby Proofing?Every household is unique. Observe your little explorer to determine when to add or update house babyproofing measures.Child Safe SpacesProvide a toy box to minimize clutter.Consider some supervised alone time once you’re confident the environment is safe.Smoke Detectors & Carbon Monoxide DetectorsMaintain functional smoke detectors and carbon monoxide detectors on every level.Look out for carbon monoxide leaks from furnaces, space heaters, or a swimming pool heater.Toilet LockA toilet lock can prevent your child from accessing unsanitary or risky water.Need to upgrade or buy a new home in Colorado? 719 Lending (NMLS #1601989) is here to guide you through the mortgage process.DisclaimerThis blog post is for informational purposes only and does not constitute financial advice. For personalized mortgage assistance in Colorado Springs and beyond, consult a licensed professional. 719 Lending is an Equal Housing Lender and complies with Fair Housing Act requirements.By following these childproofing guidelines and staying vigilant, you’ll create a secure environment for your child—one step at a time. When you’re ready to make a move to a more family-friendly home, 719 Lending can help make your transition seamless.The post Childproof House appeared first on 719 Lending.

Essential Home-Buying-AdviceAre you ready to begin the buying process in Colorado Springs or anywhere in Colorado? This post provides home buying tips and home-buying-advice on how to work with mortgage lenders, calculate closing costs, and partner with a real estate agent. Below, we’ll cover monthly payments, your down payment, the overall buying process, and how a home loan fits into your journey. We’ll also discuss gathering loan paperwork in a competitive market, understanding a conventional loans option, and why you should explore mortgage options. Finally, we’ll look at how personal finance plays a big role in your success. Let’s get started!1. Start with Personal Finances & Debt PaymentsBefore diving headfirst into the buying process, make sure you have a handle on financial planning and debt payments like student loans or credit cards. This step ensures you’re financially ready to handle a home loan and any required down payment. Paying off as many obligations as possible can help raise your credit score and show mortgage lenders you can manage your payment responsibilities. A stronger credit score also paves the way toward a better interest rate on your loan—whether you choose an FHA loan, VA loans, or conventional loans.Pro Tip: Check credit card balances regularly and consider paying them off faster. This strategy frees up your available credit to help you afford the house you want and manage closing costs effectively.Start Saving EarlySaving for a down payment is one of the most significant challenges first-time home buyers face. To start saving early, it’s essential to understand the costs involved in buying a home. Typically, a down payment ranges from 3% to 20% of the purchase price. Closing costs, which can range from 2% to 6% of the loan amount, are also a significant expense. To start saving, consider slashing expenses and creating a budget that allocates a portion of your income towards your home buying goal. You can also explore government programs that offer assistance with down payments, such as FHA loans and VA loans. Additionally, consider asking family members for help or exploring loans with small down payments.Check and Polish Your CreditYour credit score plays a crucial role in determining whether you qualify for a mortgage and the interest rate you’ll be offered. To polish your credit score, start by getting free copies of your credit reports from the three major credit reporting agencies: Equifax, Experian, and TransUnion. Review your reports for errors and dispute any inaccuracies. Paying all bills on time and keeping credit card balances low can also help improve your credit utilization and score. Consider getting a secured credit card to build credit if you’re struggling to get approved for a regular credit card. Aim for a credit score of at least 700 to qualify for better interest rates.2. Collaborate with Good Real Estate Agents & LendersWorking with a real estate agent is part of a smooth home buying journey. A mortgage broker can also play a crucial role in the home buying process by connecting you with the best mortgage options. In fact, partnering with a good real estate agent can dramatically streamline your home buying process. Meanwhile, connecting with reputable mortgage lenders—like 719 Lending—ensures you receive personalized attention for your loan terms and interest details. A local lender in Colorado Springs understands the market climate and can help you afford****costs associated with either a traditional mortgage or adjustable rate mortgages.Why a Good Real Estate Agent MattersHouse Hunting: A local agent will guide your house search based on your income, desired location, and must-have features. Real estate agents use property listings to help clients find homes that match their criteria.Competitive Market Tips: If you’re in a competitive market, a good agent can advise on winning bids and negotiating with home sellers.Research Neighborhoods: Your agent can help you identify hidden gems in rural areas or up-and-coming developments where you might find your first home or even your forever home.Explore Mortgage OptionsAs a first-time home buyer, it’s essential to explore mortgage options to find the best fit for your situation. Conventional loans, FHA loans, VA loans, and USDA loans are some of the most common types of mortgages. Conventional loans are not guaranteed by the government and typically require a higher down payment. FHA loans, on the other hand, are insured by the Federal Housing Administration and allow for lower down payments. VA loans are guaranteed by the Department of Veterans Affairs and offer generous benefits and terms for active-duty service members and veterans. USDA loans are guaranteed by the U.S. Department of Agriculture and offer favorable terms for suburban and rural home buyers. Consider working with an experienced loan officer to find the best mortgage product for your situation.3. Preparing for Down Payment & Closing CostsFor many first time home aspirants, saving enough money for a down payment and closing costs can feel daunting. However, if you start saving early, you’ll be amazed at how quickly you can accumulate the costs needed to embark on your home buying adventure.Down Payment Basics: A standard down payment on a conventional loans product typically ranges from 3% to 20% of the purchase price. Some home buyers prefer a smaller down payment if they qualify for certain homebuying programs or if they choose an FHA loan backed by the Federal Housing Administration. A larger down payment can help build home equity faster, giving you more financial stability.Closing Costs: These costs can include appraisal fees, title fees, property taxes, and more. Preparing for closing costs ahead of time keeps you from scrambling to find extra money.Insurance Considerations: You’ll likely need homeowner’s insurance and possibly mortgage insurance depending on your down payment size. This insurance aspect adds to your monthly payments and overall payment obligations.Note: Some va loans do not require a down payment, allowing qualifying borrowers to afford a house sooner. Plus, a lower interest rate may be available for those who meet Veterans Affairs criteria.4. Navigating the Buying Process & Loan PaperworkThe home buying process involves multiple steps: analyzing your finances, connecting with a lender, and ensuring your loan paperwork is in order. You’ll often need:Tax Returns: Lenders want to see proof of consistent income.Pre Approved Status: Getting pre approved for a home loan sets you apart in a competitive market. A good credit report is crucial for loan approval.Loan Paperwork for Final Sign-Off: This might include details about any debt, pay stubs, and your latest bank statements.If you’re unsure which home loan is right for you, consider an FHA loan if your credit score isn’t high enough for a lower interest rate on a conventional loans product. This is where the Federal Housing Administration can help some first time homebuyers. Alternatively, VA loans may benefit those who served in the military and want flexible loan terms or even zero down payment.5. House Hunting & The Bigger Market PictureThe fun part of the buying process is often the house hunting stage. However, keep in mind how the market shapes costs, interest, and inventory:Visit Open Houses: Make a list of each house you see and compare important features like lot size, layout, or whether the home inspection uncovered issues. Additionally, consider the importance of a home appraisal to ensure the house’s value aligns with the asking price.Market Forces: A strong seller’s market means you might have to act quickly on a house you love, especially if you want to afford a certain purchase price.Loan Strategies: If interest rates look poised to rise, locking in a favorable interest rate early might save you significant money over your payment period.Don’t Skip the Home InspectionA home inspection is a crucial step in the home buying process that can save you thousands of dollars in the long run. A professional inspector will assess the structure and mechanical systems of the property, identifying potential problems that may not be immediately apparent. This can give you leverage to negotiate with the seller or even walk away from the deal if the issues are significant. Don’t skip the home inspection, as it can provide valuable peace of mind and protect your investment.6. Final Steps: Closing Costs, Loan Terms & Basic UpkeepOnce you’ve chosen a house, be sure to review:Loan Terms: Understand whether you have a fixed or variable interest structure, how your monthly payments break down, and any mortgage insurance required.Closing Costs: You’ll likely pay for title insurance, an insurance policy on the property, potential property taxes, and other costs associated with finalizing the sale. An escrow account is often used to manage funds for property taxes and insurance, ensuring these expenses are paid on time.Basic Upkeep: After closing, your new house will need ongoing maintenance. Keep some money in reserve to pay for repairs or improvements.How Much Home can you truly afford? The best approach is to compare your income, your outstanding debt, and projected payment amounts. If you’re unsure, ask your lender at 719 Lending to help you evaluate your finances so you can secure the right home loan.Plan for Monthly PaymentsAs a first-time home buyer, it’s essential to plan for monthly payments that go beyond just your mortgage. Property taxes, home insurance, maintenance costs, and HOA fees can add up quickly. Consider using a mortgage calculator to estimate your monthly payments and factor in these additional expenses. Aim to keep your monthly housing costs below 25% of your take-home pay to avoid being house poor. Don’t forget to budget for closing costs, which can range from 2% to 6% of the loan amount.Make a Strong OfferWhen making an offer on a home, it’s essential to be strategic and competitive. Consider working with a good real estate agent who can guide you through the process and help you negotiate with the seller. Don’t show your hand too early, and be prepared to walk away if the deal doesn’t feel right. A strong offer should include a pre-approval letter from a reputable mortgage lender, a reasonable price, and a clear understanding of the contingencies involved. Don’t be afraid to negotiate, and be prepared to compromise to get the deal done.FAQ: Common Questions from First Time Home BuyersBelow are some questions new home buyers ask when they start the buying process:When should I get pre approved for a home loan?Ideally, get pre approved before you begin serious house hunting. A pre approved letter proves to home sellers that you have the financial backing to make a serious offer in a competitive market. Additionally, reviewing a home inspection report before finalizing a purchase is crucial to ensure there are no hidden issues with the property.How do I know my down payment target?Most home buyers aim for at least 3% to 5% of the purchase price—sometimes more if they can manage it. A bigger down payment can reduce closing costs like mortgage insurance and might lead to a better interest rate.Do I need to worry about adjustable rate mortgages?Adjustable rate mortgages can be a good choice for certain first time home shoppers if they plan to move or refinance before rates adjust. But if you want a stable payment, a traditional mortgage with a fixed interest rate offers predictable monthly payments.How can I use homebuying programs?Some lenders or state agencies provide homebuying programs that lower your costs or interest over time, especially for a first time buyer with strong personal finance habits.What if I’m not sure how much house I can afford?Ask your lender at 719 Lending about your unique finances. Factor in your income, total debt, and potential future expenditures like basic upkeep of the house.Conclusion: Making the Biggest Purchase with ConfidenceYour first time home purchase is one of life’s biggest purchase moments, and feeling financially ready goes a long way. By managing debt payments wisely, raising your credit score, and working with an experienced real estate agent and lender, you’ll navigate the home buying process more smoothly—even in a competitive market. Staying informed about real estate market trends is also crucial to making a well-informed decision.Ready to buy your first home? Contact 719 Lending or explore mortgage options on our Home Loan Options page. We specialize in Colorado Springs real estate and can guide you toward the right loan program, whether it’s FHA loan, VA loans, or conventional loans.DisclaimerThis blog post is for informational purposes only and does not constitute financial advice. Please consult a licensed mortgage professional for individualized guidance. NMLS#1601989. Equal Housing Lender. We comply with the Fair Housing Act and all other applicable laws. For more information, visit HUD.gov or Colorado.gov.The post Essential Home-Buying-Advice appeared first on 719 Lending.

What You’ll Learn: In this post, we’ll explore how military disability compensation works, why it matters for Colorado Springs homebuyers, and how these benefits can affect your mortgage journey. We’ll also touch on where to find updated rate tables, what these payments mean for your monthly finances, and how 719 Lending can help you purchase or refinance a home in Colorado.Understanding VA Disability CompensationMilitary disability compensation is a monthly tax-free payment the U.S. Department of Veterans Affairs (VA) provides to eligible veterans. These disability benefits offer crucial financial and support resources for individuals with disabilities, particularly veterans. Each year, these payment rates may change to account for the cost of living. According to the VA’s official rate tables, the compensation amount depends on the severity of a service-connected disability and the established disability ratings.Here’s what you need to know next:These benefits are crucial if you’re planning to buy Colorado Springs real estate because consistent monthly income may strengthen your mortgage application. Whether you’re a first-time homebuyer or a current homeowner in Colorado, disability compensation can help with monthly mortgage payments or other household expenses.Post-traumatic stress disorder (PTSD) is a significant example of a service-connected disability that may require additional documentation to support a disability claim.Eligibility and Requirements:To qualify for VA disability compensation, veterans must have service connected disabilities, which are injuries or diseases that occurred during or were aggravated by military service. Additionally, benefits are available for surviving spouses under Dependency and Indemnity Compensation (DIC), providing financial support to spouses, children, or parents of servicemembers who died during service or due to service-connected disabilities.Eligibility and RequirementsTo be eligible for VA disability compensation, veterans must meet certain requirements. Here are the key eligibility criteria:Service Connection: The veteran’s disability must be service-connected, meaning it was incurred or aggravated during active military service.Discharge Status: The veteran must have been discharged from the military under conditions other than dishonorable.Medical Evidence: The veteran must provide medical evidence to support their disability claim, including private medical records and service treatment records.Disability Rating: The veteran must have a disability rating assigned by the VA, which determines the level of compensation they are eligible for.Application: The veteran must apply for disability compensation through the VA, either online, by phone, or in person.In addition to these requirements, the VA also considers the following factors when determining eligibility:Nature and Extent of Disability: The VA evaluates the severity and impact of the veteran’s disability on their daily life and ability to work.Military Service History: The VA reviews the veteran’s military service history to determine if their disability is related to their service.Medical History: The VA examines the veteran’s medical history to determine if their disability is related to their service-connected condition.Veterans who meet these eligibility criteria may be eligible for disability compensation, which can provide a monthly tax-free payment to help offset the costs of their disability. The VA also offers additional benefits, such as Dependency and Indemnity Compensation (DIC) for surviving spouses and Special Monthly Compensation (SMC) for veterans with severe disabilities.It’s important to note that the VA uses a combined disability rating system to determine the overall level of disability compensation a veteran is eligible for. This system takes into account multiple disabilities and assigns a single rating that reflects the veteran’s overall level of disability.If you’re a veteran with a service-connected disability, it’s essential to understand the eligibility requirements and application process for VA disability compensation. You can start by visiting the VA’s website or contacting a Veterans Service Organization (VSO) for guidance and support.Why It Matters for Colorado Homebuyers1. Boosted Financial StabilityHaving a reliable monthly source of income from military disability compensation can lower your debt-to-income ratio. That ratio is a common factor mortgage professionals review when deciding on loan approvals. With more income, you may qualify for a larger mortgage loan or enjoy more manageable monthly payments.2. Potentially Lower Funding FeesIf you receive VA disability compensation, you might qualify for a reduced (or fully waived) VA funding fee when taking out a VA loan. This benefit can save you thousands of dollars over the life of your mortgage. For more details on how VA loans work, check official resources from the Consumer Financial Protection Bureau (CFPB).3. Better Credit PositionDisability compensation can also help you stay on top of bills. Paying your bills on time supports a healthy credit score, which in turn improves your interest rate prospects. Whether you choose a VA loan or another mortgage product, a stable credit profile is key.How to Check the Current Disability Rating TablesEach year, the rates for military disability compensation are updated. You can find comprehensive rate tables on the U.S. Department of Veterans Affairs website. These tables break down monthly payment amounts based on your disability rating and the number of dependents you have.If you want to see how these tables influence your monthly budget, consider using a spreadsheet or a financial planning tool. That way, you’ll quickly see how much you have available for housing costs in Colorado Springs or elsewhere in the state of Colorado.Tips for Using Disability Compensation Toward a MortgageGet Pre-Approved EarlyTalk to a loan officer or mortgage lender at 719 Lending. A pre-approval gives you a clearer picture of your budget before you start shopping for Colorado Springs real estate.Work With a Mortgage ProfessionalA mortgage broker who understands VA loans can guide you through the funding fee waivers, down payment rules, and other nuances tied to disability compensation.Check Out Local ResourcesColorado offers various programs for veterans. Research county or state-level assistance that might help with closing costs or property taxes. The U.S. Department of Housing and Urban Development (HUD) also has resources for homebuying assistance.Build a Financial CushionIf your disability rating changes, your monthly compensation may go up or down. Plan a buffer in your mortgage payment strategy so you’re prepared for any future adjustments.Steps to Incorporate Your Disability Compensation in the Homebuying ProcessCalculate Your Monthly BudgetInclude your compensation payments as part of your total income. This can raise your purchasing power in Colorado.Review Your CreditCheck your credit report for errors, and address any issues. A stronger credit profile can lead to a better interest rate.Gather DocumentationCollect pay stubs, disability award letters, and other proof of consistent income. Lenders often need these documents to finalize your loan.Consult With 719 LendingA local mortgage professional in Colorado Springs can explain every stage of the loan process. Check out our Home Loan Options to see what best fits your situation.Stay InformedRate tables, cost-of-living adjustments, and VA loan guidelines can change. Set up alerts or bookmark the VA’s disability compensation website to stay updated.FAQ: Veterans Disability Benefits and Home LoansQ1: Do I need a specific disability rating to apply for a VA loan?No specific rating is required to apply for a VA loan, but your compensation amount can help you qualify or waive the VA funding fee. Check with 719 Lending for personalized guidance.Q2: Can I use my disability compensation to qualify for a larger mortgage?Yes. Lenders consider your total income when deciding on the size of the loan you can handle. Disability compensation can boost your income, helping you qualify for a higher mortgage amount.Q3: What if my disability rating changes after I close on my mortgage?If your rating changes, your monthly payments could go up or down. This does not automatically change your mortgage, but it can impact your monthly finances. Keep open communication with your loan officer if you have concerns.Q4: Why is the VA notification letter important in the claims process?The VA notification letter is a critical document in the claims process as it formally informs veterans about their claim’s status and the decisions made by the VA. Veterans have one year from the date of this notification to appeal the claims decision, making it essential for understanding their disability rating and its impact on benefits, including home loans.While this article provides a thorough overview of VA disability compensation and how it can impact your homebuying journey, please remember these important clarifications:Regulations and Rates Can ChangeVA disability rates, qualification standards, and mortgage guidelines may be updated periodically. Always verify the latest information on the VA’s official website and consult with 719 Lending or another qualified mortgage professional for the most accurate and personalized advice.Service Connection is CriticalTo receive disability compensation, your condition must be determined by the VA to be service-connected. The assigned disability rating directly influences the amount of monthly tax-free compensation you receive.No Guaranteed Loan AmountWhile disability income can strengthen your mortgage application or reduce VA loan fees, each lender has unique underwriting criteria. Your total financial profile, including credit and debt-to-income ratio, also factors into the final loan approval and amount.Appeals & Notification LettersVeterans have the right to appeal claims decisions within one year of the notification date. Keep all official VA documents, including notification letters, as they outline crucial details that may affect your benefits and mortgage options.Seek Professional GuidanceThis content is informational only and should not replace professional advice. Consult with a mortgage officer at 719 Lending if you have questions about your specific situation. For any legal or tax-related concerns, consider speaking with an attorney or financial advisor.By staying informed, keeping organized documentation, and working closely with knowledgeable professionals, you can make the most of your VA disability benefits and secure a home in Colorado Springs or anywhere in Colorado. If you’re ready to learn more about your mortgage options, reach out to 719 Lending for expert guidance and support.Your Next StepIf you’re a veteran or service member looking to buy a home in Colorado Springs, your military disability compensation might give you the edge you need. Contact 719 Lending to discuss your mortgage options today. Our friendly and expert loan officers will help you find the best path to homeownership in Colorado, ensuring you make the most of your VA benefits.(Disclaimer: This article is for informational purposes only and is not financial or legal advice. For details on current compensation rates and benefits, consult the VA’s official resources or speak with a qualified mortgage professional.)The post Key Tips for VA Disability Benefits: Military Disability Compensation appeared first on 719 Lending.

Choosing the right mortgage term is a critical decision in the home-buying process. The two most common options are the 15-year and 30-year fixed-rate mortgages. Each has its own set of advantages and drawbacks, and understanding these can help you decide which one aligns with your financial goals.The 15-Year MortgageA 15-year mortgage is often favored by buyers who want to pay off their home faster and save on interest costs. Here are the key pros and cons:Pros:Lower Total Interest: You’ll pay significantly less interest over the life of the loan because of the shorter term and typically lower interest rates.Faster Homeownership: You’ll own your home outright in half the time, which can be a major milestone for financial independence.Build Equity Faster: With higher monthly payments, you build equity in your home much more quickly.Cons:Higher Monthly Payments: While you save on interest, the monthly payments are higher, which could strain your budget.Less Flexibility: The higher payments may leave less room for other financial goals, such as investing or saving for retirement.The 30-Year MortgageA 30-year mortgage remains the most popular choice, offering lower monthly payments and greater flexibility. Here’s what to consider:Pros:Lower Monthly Payments: The payments are spread out over a longer period, making them more manageable for many buyers.Budget Flexibility: Lower payments free up cash for other priorities, such as investing, saving, or unexpected expenses.Afford a More Expensive Home: A 30-year term allows buyers to qualify for a larger loan.Cons:Higher Total Interest: You’ll pay more interest over the life of the loan due to the extended term and slightly higher rates.Slower Equity Growth: Building equity takes longer, leaving you more vulnerable to market fluctuations in the early years.Which is Right for You?The choice between a 15-year and 30-year mortgage depends on your financial situation and goals. If you can comfortably afford higher payments and prioritize long-term savings, a 15-year mortgage might be ideal. If flexibility and affordability are more important, the 30-year option could be a better fit.Consult a mortgage professional to review your finances and determine the best path forward.The post 15-Year vs. 30-Year Mortgage: Which One is Right for You? appeared first on 719 Lending.

If you’re pondering when to make the leap into the Colorado Springs housing market, you’re not alone. You might be weighing the pros and cons of market conditions, interest rates, and personal circumstances. In this post, we’ll explore when it might make sense to wait and when it may be wise to move forward. We’ll also cover key considerations such as your credit score, down payment savings, and the overall costs of buying a home. Let’s dive in!Real Estate Market TimingWhen to WaitSeller’s Market ConditionsIn a seller’s market, local market conditions often lead to higher prices and bidding wars. Demand for homes outweighs supply. If you have the flexibility to wait, you might benefit from a future buyer’s market where you could find more favorable prices and less competition.When Not to WaitLow Interest RatesSecuring a lower interest rate can save you thousands—or even tens of thousands—over the life of your mortgage. If rates are near historic lows, you may consider acting sooner rather than later to lock in a better deal. Understanding the current housing market can help you make an informed decision on when to act.Refinancing OpportunitiesIf you already own a home, refinancing at a lower interest rate can reduce your monthly payments. But if you’re a renter looking to transition into homeownership, locking in an attractive rate with 719 Lending can help you build equity faster in Colorado Springs or anywhere in Colorado.Personal Goals and Financial PrioritiesWhen to WaitMajor Life ChangesPlanning to switch careers, go back to school, or pay off substantial debt first? These life events may pull your budget in different directions. You might prefer to stabilize your finances before adding a mortgage payment.Building a BudgetHomeownership has extra costs, including insurance, taxes, maintenance, and repairs. If you’re new to budgeting or have other financial priorities, it can be smart to strengthen your financial foundation before you buy.When Not to WaitReady to InvestIf you have a solid down payment saved and your finances are on track, waiting too long could mean missing out on properties that fit your criteria. In a city like Colorado Springs, great homes can go quickly. Being aware of local market conditions can help you identify the best opportunities for investment.Stable Future PlansIf you’ve planned for homeownership in your five-year or ten-year outlook—and everything aligns—it might be time to partner with a real estate agent to find the ideal home.Assessing Your Financial ReadinessYour financial readiness often dictates whether you should wait or jump in. Here’s what to keep in mind:Debt-to-Income (DTI) RatioLenders generally prefer a DTI ratio of 36% or lower. This ratio shows how much of your monthly income goes toward debt payments. A lower DTI can help you qualify for better mortgage terms.Monthly Mortgage PaymentDon’t forget expenses like homeowners insurance, property taxes, and routine maintenance. Make sure your budget can comfortably handle these costs on top of your base mortgage payment.Savings for a Down PaymentA larger down payment (ideally 20% or more) can eliminate the need for private mortgage insurance (PMI) and reduce your monthly costs. However, some mortgage options require as little as 3.5% down. Talk to 719 Lending to understand what’s best for you.Credit ScoreA solid credit score can help you qualify for lower interest rates and more favorable loan programs. Be sure to check your score (you’re entitled to a free report annually from agencies like Experian, TransUnion, and Equifax) before applying for a mortgage.Your financial readiness can also be influenced by the current state of the housing market.Setting a Housing BudgetSetting a housing budget is a crucial step in the homebuying process. It helps you determine how much house you can afford and what your monthly payments will be. Here’s how to calculate your monthly payment and down payment:Calculate Your Monthly Payment and Down PaymentTo calculate your monthly payment, you’ll need to consider several factors, including the purchase price of the home, your down payment, interest rate, and loan term. You can use a mortgage calculator to get an estimate of your monthly payment. Additionally, you’ll need to factor in other costs such as property taxes, insurance, and maintenance.When it comes to your down payment, you’ll want to consider how much you can afford to put down. While a 20% down payment is ideal, it’s not always necessary. Some mortgage options allow for lower down payments, but you may need to pay private mortgage insurance (PMI). PMI can increase your monthly payment, so it’s essential to factor it into your budget.Check Your Credit Score and DTI RatioYour credit score and debt-to-income ratio are two major factors mortgage lenders look at:Credit ScoreGenerally, a higher score opens the door to better rates. If your score needs improvement, consider paying down debt or disputing any errors on your credit report before house hunting.Debt-to-Income RatioCalculate your monthly debts, including credit cards, auto loans, and student loans. Compare them to your gross monthly income. The lower the ratio, the more likely you’ll qualify for competitive loan terms from 719 Lending.Pro Tip: If you discover high debt or a low credit score, strategize with a mortgage professional to create a roadmap for improving your numbers.Save for a Down PaymentEven if you’re planning on an FHA or VA loan (which can have more lenient requirements), saving for a down payment is still critical. Here’s why:Lower Monthly PaymentThe more you put down, the less you borrow—and that means lower monthly costs.Avoiding Private Mortgage Insurance (PMI)If you can put down 20% on a conventional loan, you often avoid PMI altogether.Closing CostsBudget for 2% to 5% of the home’s purchase price to cover appraisals, inspections, and title insurance. Having these funds set aside helps you avoid last-minute financial stress.Understanding Homebuying CostsBeyond the list price, here’s what to expect:Down PaymentVaries depending on the loan program. Conventional loans might require 3% to 20%, while VA loans may offer 0% down for those who qualify (with limitations).Closing CostsTypically 2% to 5% of the purchase price. This includes fees such as loan origination and title insurance.PMI (Private Mortgage Insurance)If your down payment is under 20% on a conventional loan, you’ll likely need to pay PMI.Property TaxesTaxes vary by county in Colorado. Research your specific area—such as Colorado Springs, Pueblo, or Castle Rock—to gauge how they’ll affect your monthly payment.Real Estate AttorneyHiring a real estate attorney can ensure that all legal aspects of your home purchase are handled appropriately during the closing process.Understanding the Local MarketUnderstanding the local market is vital when buying a home. It helps you determine the value of the property and whether it’s a good investment. Here’s how to research the Colorado Springs real estate market and get pre-approved for a mortgage:Research the Colorado Springs Real Estate MarketThe Colorado Springs real estate market is a competitive market with a mix of old and new homes. The median home price is around $340,000, and the market is driven by a strong economy and a growing population. To research the market, you can start by looking at online listings, talking to real estate agents, and driving around neighborhoods to get a feel for the area.Preparing for the Homebuying ProcessReady to move forward? Here’s how to set yourself up for success:Get Pre-ApprovedWhen you’re pre-approved, you show sellers you’re a serious buyer with a solid financing plan. Check out our Home Loan Options to learn more about available programs in Colorado.Explore Mortgage TypesCompare fixed-rate vs. adjustable-rate mortgages to find the right fit. A fixed-rate mortgage ensures predictable monthly payments, while an adjustable rate may start lower but can change over time.Partner with a Real Estate AgentAn experienced agent familiar with the Colorado Springs market can help you navigate the competitive landscape, from home tours to negotiating purchase contracts.Research the Local MarketKeep an eye on recent sales and current listings. If you find something that matches your criteria, act quickly. Good homes don’t stay on the market for long!Consult a Real Estate AttorneyA real estate attorney can help you navigate the legal complexities of buying a home, ensuring that all documents are in order and that your interests are protected.Get Pre-approved for a Mortgage and Consider Closing CostsGetting pre-approved for a mortgage is an essential step in the homebuying process. It gives you an idea of how much you can borrow and what your monthly payments will be. To get pre-approved, you’ll need to provide financial documents, such as pay stubs, bank statements, and tax returns. You’ll also need to consider closing costs, which can range from 2% to 5% of the purchase price. Closing costs include fees such as origination fees, title insurance, and appraisal fees.By understanding the local market and getting pre-approved for a mortgage, you’ll be better equipped to navigate the homebuying process and find the right home for your needs and budget.Find a Real Estate AgentWorking with the right agent can make all the difference:Local KnowledgeA Colorado Springs-based agent can provide insights into neighborhood amenities, school districts, and pricing trends.Referrals & CredentialsAsk friends or family for recommendations. Verify the agent’s license and certifications through sources like the Colorado Real Estate Commission or the National Association of Realtors (NAR).Clear CommunicationMake sure you and your agent are on the same page about budget, location preferences, and must-have features.Understanding the Mortgage ProcessWhile it can feel overwhelming, the mortgage process can be broken down into steps:ApplicationYou’ll submit financial documents like pay stubs and bank statements to your lender.UnderwritingThe lender’s underwriting team reviews your file, checking your credit, income, and property details to ensure you meet guidelines.ClosingIf everything is approved, you’ll sign final paperwork, pay any closing costs, and receive the keys to your new home.Real Estate AttorneyHaving a real estate attorney present during the closing can ensure that all legal aspects are handled appropriately and that the transfer of ownership is smooth.Post-ClosingRemember to budget for ongoing expenses like property taxes and homeowners insurance so you can stay ahead of your new financial obligations.Frequently Asked Questions1. Is it cheaper to rent or buy in Colorado Springs?It depends on factors like local rental prices, your down payment, and interest rates. In many cases, owning can be more cost-effective in the long run since you build equity rather than paying rent to a landlord.2. How long does it take to buy a house in Colorado?The timeline can vary, but the process often takes 30 to 60 days from accepted offer to closing, assuming you’re pre-approved and there are no unexpected delays in underwriting or inspection.3. Can I use gift money for a down payment?Yes, many loan programs allow gift funds from relatives or close friends. Just be sure to document the gift properly and communicate with your lender to meet specific guidelines.Final ThoughtsBuying a home is a major decision—especially in a competitive market like Colorado Springs. Whether you choose to wait or seize the moment, it’s essential to evaluate your finances, your personal goals, and the current real estate landscape. If low interest rates are in your favor or you’ve achieved key financial milestones, now could be the perfect time to buy. On the other hand, if you’re juggling big life changes or need to strengthen your budget, waiting might be the right path.Ready to Talk About Your Mortgage Options?719 Lending (NMLS #1601989) is here to help you navigate the homebuying process in Colorado. Our friendly team is dedicated to helping you find the right financing solution—no matter your situation. Contact us today to get started on your journey to homeownership.DisclaimerThis blog post is for informational purposes only and does not constitute financial advice. Please consult a licensed mortgage professional for individualized guidance. 719 Lending is an Equal Housing Lender and complies with Fair Housing Act requirements.NMLS #1601989The post Buying a House: When to Wait (and When Not to Wait) in Colorado Springs appeared first on 719 Lending.

Are you ready to find the perfect home in Colorado Springs or anywhere in Colorado? Touring a house is an exciting step, yet it can also feel overwhelming. An open house is a public event hosted by the listing agent, allowing potential buyers to casually tour the home for sale. In this guide, we’ll break down exactly what to look for when visiting a property—drawing on insights from industry experts to ensure nothing slips through the cracks. From structural concerns and potential maintenance issues to neighborhood considerations and property inspection, you’ll learn the essential steps for a successful tour. By the end, you’ll feel confident and prepared to make the best decision for your future home purchase.Preparing for a Home TourBefore embarking on a home tour, it’s essential to prepare yourself to make the most out of the experience. Here are some steps to help you prepare:Research the NeighborhoodResearching the neighborhood is crucial in determining whether the area is suitable for your needs. Look into the local schools, crime rate, public transportation, shopping centers, and community amenities. You can also drive around the neighborhood to get a feel of the area and talk to locals to gain insight into the community. This groundwork will help you understand if the neighborhood aligns with your lifestyle and long-term plans.Define Your PrioritiesMake a list of your priorities when it comes to your dream home. Consider factors such as the number of bedrooms and bathrooms, square footage, floor plan, storage space, and outdoor space. Having a clear idea of what you’re looking for will help you focus on the essential features during the home tour. This way, you can quickly identify homes that meet your criteria and avoid those that don’t.Review the Listing and Floor PlanReview the listing and floor plan of the property to get an idea of the layout and features of the home. Assessing the wall and floor condition during a property inspection is crucial, as it helps identify signs of significant damage such as warped floors and cracks. Take note of the room sizes, closet space, and any unique features such as a backyard or pool. This will help you visualize the space and identify any potential issues during the home tour. By familiarizing yourself with the floor plan, you can better assess whether the home’s layout suits your needs and preferences.Scheduling a Home TourScheduling a home tour can be done in various ways, depending on your preferences and needs. Here are some options to consider:Working with a Real Estate AgentWorking with a real estate agent can be beneficial in scheduling a home tour. They can provide you with valuable information about the property, neighborhood, and local market trends. They can also help you navigate the homebuying process and provide guidance on what to look for during the home tour. Additionally, they can often provide access to properties that are not publicly listed, giving you a wider range of options to choose from.When working with a real estate agent, be sure to communicate your priorities and needs clearly. They can help you find properties that match your criteria and schedule home tours accordingly. A knowledgeable real estate agent can make the homebuying process smoother and more efficient, ensuring you don’t miss out on your ideal home.Scheduling the TourScheduling a home tour is an exciting step in the homebuying process. To make the most of your time, it’s essential to plan ahead and be flexible. Here are some tips to consider:Be Flexible: Be open to touring homes at different times of the day and week. This will give you a better sense of the neighborhood and the home’s natural light. Seeing a property in various lighting conditions can help you understand how it feels throughout the day.Plan Ahead: Schedule tours in advance to ensure that the homes you want to see are available. This is especially important during peak homebuying seasons when properties can move quickly.Bring a List: Make a list of the homes you want to tour and prioritize them based on your needs and preferences. This will help you stay organized and focused during your tours.Consider a Pre-Listing Home Inspection: If possible, consider hiring a home inspector to evaluate the property before you make an offer. This can help you identify potential issues and avoid costly repairs down the line. A pre-listing home inspection can provide peace of mind and give you leverage in negotiations.Prioritize the Home’s StructureBefore you fall in love with the decor or a fresh paint job, remember: structure comes first. A house may look beautiful on the surface, but any major structural problems can be costly to fix. Here’s what to check:Foundation: Look for visible cracks or signs of water damage in the basement or crawl space.Roof Condition: A new roof can cost thousands of dollars. Ask about its age and examine for visible wear or missing shingles.Walls and Floors: Uneven floors or large cracks in the walls could signal bigger issues like settling or foundational shifts. Assess the wall and floor condition as warped floors and cracks can indicate serious structural issues. Neglecting these signs can lead to costly repairs.Windows and Doors: Check that they open and close smoothly. Faulty seals can lead to drafts and higher utility bills.Pro Tip: Bring a small flashlight to examine dark corners, attics, or crawl spaces for moisture or pest concerns. According to experienced real estate professionals, these hidden spots often reveal a home’s true condition.Examine Potential Maintenance Issues Including Electrical and Plumbing SystemsBeyond the structure, keep an eye on the overall condition of the home’s main systems. Experts suggest testing everyday functions—like turning on faucets—to catch potential problems early:Plumbing and Water PressureTurn on faucets, showers, and even flush toilets to test water flow and drainage.Look for signs of leaks under sinks, around toilets, or in basement areas.Electrical and LightingFlip all light switches to see if they work properly.Test multiple outlets with a phone charger or small device.Check the electrical panel to confirm updated wiring or clear labeling. Assess the home’s age to identify potential safety issues, ensuring that the electrical and plumbing systems meet current codes.HVAC SystemsAsk about the age and maintenance history of the heating and cooling systems. Understanding the type of system in place is crucial.Listen for any unusual noises coming from vents or fans.Inspect both heating and cooling systems to understand potential repair costs and energy efficiency.Major AppliancesIf appliances like a refrigerator or washer/dryer are included, inspect their condition and age.Note whether they’re energy-efficient, as upgrades can cut down on future utility costs.Remember: If you spot something concerning, it doesn’t necessarily mean you should walk away. However, you’ll want to factor potential repair or replacement costs into your budget—or consider negotiating these expenses with the seller.Exterior EvaluationWhen evaluating the exterior of a home, there are several key factors to consider. A thorough inspection of the outside can reveal a lot about the property’s overall condition:Roof Condition: Check for damaged, missing, or loose shingles. Look for signs of wear around chimneys, vents, and skylights. A well-maintained roof is crucial for protecting the home from weather-related damage.Siding: Inspect the siding for cracks, damage, or signs of wear. Check for any gaps or openings that could allow water to enter the home. Properly maintained siding helps prevent moisture problems and improves energy efficiency.Gutters and Downspouts: Ensure they are securely attached and functioning properly. Effective drainage systems prevent water damage to the foundation and landscaping.Landscaping: Consider the condition of the lawn, trees, and other landscaping features. Are they well-maintained, or are they overgrown and neglected? Healthy landscaping can enhance curb appeal and indicate overall property care.Outdoor Structures: Evaluate the condition of any outdoor structures, such as decks, patios, or fences. Check for signs of rot, rust, or other damage that may require repairs.Interior EvaluationWhen evaluating the interior of a home, there are several key factors to consider. First, take note of the overall condition of the walls, floors, and ceilings. Look for any signs of damage, wear, or needed repairs. Cracks in the walls or ceilings and uneven floors can be indicators of underlying issues. Also, pay attention to the lighting in each room, and consider the natural light that enters through the windows. Natural light can significantly impact the ambiance and energy efficiency of a home.Next, evaluate the layout and functionality of each room. Consider the flow of traffic and how the rooms are connected. Think about how you will use each room and whether the layout will work for your needs. For instance, an open floor plan might be ideal for entertaining, while separate rooms might offer more privacy. Also, take note of the storage space in each room, including closets, cabinets, and shelves. Adequate storage space is essential for maintaining an organized and clutter-free home.Finally, consider the overall aesthetic of the interior. Think about the style and design of the home, and whether it fits with your personal taste. Take note of any unique features, such as built-in shelves or custom molding, which can add character and value to the home. By thoroughly evaluating the interior, you can ensure that the home meets your functional and aesthetic needs.Systems and ComponentsWhen evaluating a home, it’s essential to consider the systems and components that make it functional. This includes the heating and cooling systems, electrical and plumbing systems, and appliances.Start by evaluating the heating and cooling systems. Check the age and condition of the systems, and consider whether they are energy-efficient. Ask about the maintenance history and look for any signs of wear or needed repairs. Efficient heating and cooling systems can save you money on energy bills and reduce the need for costly repairs.Next, evaluate the electrical and plumbing systems. Check for any signs of damage or needed repairs, and consider whether the systems are up-to-date. Look at the electrical panel to ensure it’s properly labeled and up to code. Test outlets and switches to make sure they’re functioning correctly. For plumbing, check for leaks, water pressure, and the condition of pipes. Updated electrical and plumbing systems can prevent future issues and ensure the home’s safety.Finally, consider the condition of the appliances, including their age and functionality. Energy-efficient appliances can reduce utility costs and are often a sign of a well-maintained home. By thoroughly evaluating these systems and components, you can get a better understanding of the home’s overall condition and potential future maintenance needs.Observe Home Layout and DesignWhile structural soundness is vital, don’t forget about everyday livability. According to industry insights, a home’s layout can influence long-term satisfaction:Flow Between Rooms: Does the main level feel open and practical for your needs? Are living areas separated in a way that suits your lifestyle? For instance, an open floor plan might be ideal for entertaining, while separate rooms might offer more privacy.Storage Space: Check closets, pantries, and attic or basement storage. Sufficient room for personal items can eliminate clutter and maintain order.Natural Light: Take note of window placements and whether rooms feel bright enough during the day.Here’s what you need to know next: Make sure the home’s design matches your family’s habits. A house that looks good on paper may not be functional in day-to-day life if the layout is awkward or lacking key features.Assess the Neighborhood and Surrounding AreaWhen touring a house, don’t forget that your surroundings matter as much as the property itself. If you’re considering Colorado Springs real estate, keep these points in mind:Noise Levels: Are you near busy roads, train tracks, or commercial areas? Visit at different times—both weekdays and weekends—to see how noise and traffic may change.Proximity to Amenities: Notice how close you are to schools, grocery stores, parks, and healthcare facilities.Local Regulations: In some parts of Colorado—especially near mountain communities like Monument or Castle Rock—local guidelines may affect landscaping, building additions, or paint colors.Potential for Growth: Consider whether the area is up-and-coming, stable, or in decline. Local real estate data can provide insight into property value trends.Community Atmosphere: If possible, talk to neighbors. Their insights can help you gauge the neighborhood’s culture and safety.Asking the Right QuestionsWhen touring a home, asking the right questions can provide valuable insights into the property’s condition and potential future costs. Here are some key questions to consider:What is the Square Footage of the Home?: Understanding the size of the home helps you compare it to your needs and other properties.How Many Bedrooms and Bathrooms Are There?: Ensure the home meets your requirements for living space and convenience.What is the Condition of the Electrical and Plumbing Systems?: Ask about the age and maintenance history of these systems. Updated electrical and plumbing systems can prevent future issues and costly repairs.Are There Any Known Issues with the Home?: Inquire about any foundation problems, termite damage, or other significant concerns. Knowing about these issues upfront can help you make an informed decision.Are There Any Upcoming Assessments or Fees Associated with the Home?: Understanding any additional costs can help you budget more accurately.Is the Home Located in a Flood Zone or Prone to Natural Disasters?: Knowing the risk of natural disasters can influence your decision and insurance needs.Questions to Ask During the House TourWhen touring a home, it’s essential to ask questions to get a better understanding of the property. Here are some questions to consider:What is the age and condition of the heating and cooling systems?Are the electrical and plumbing systems up-to-date?What is the condition of the appliances?Are there any signs of damage or needed repairs?How is the natural light in each room?What is the overall condition of the walls, floors, and ceilings?Are there any unique features or custom design elements?Asking these questions can help you gather important information about the home’s condition and potential future costs. It also shows the seller and real estate agent that you are a serious and informed buyer.Red Flags to Watch ForWhen touring a home, being aware of potential red flags can save you from future headaches. Here are some key things to watch for:Water Damage: Look for signs of water damage, such as stains, warping, or mineral deposits. Water damage can indicate leaks or poor drainage, leading to costly repairs.Structural Issues: Check for any signs of structural damage, such as cracks in the walls or floors. Structural problems can be expensive to fix and may affect the home’s safety.Pest Infestation: Look for signs of pest infestation, such as droppings, nests, or actual pests. Pests can cause significant damage and health concerns.Mold and Mildew: Check for any signs of mold and mildew, such as musty odors or visible growth. Mold can affect indoor air quality and indicate moisture problems.Broken Sewer Line: Check for any signs of a broken sewer line, such as sewage backups or slow drains. A broken sewer line can lead to unpleasant odors and costly repairs.By being aware of these potential issues, you can make a more informed decision when buying a home. Remember to always work with a reputable real estate agent and consider hiring a home inspector to evaluate the property before making an offer.Structural IssuesWhen evaluating a home, it’s essential to consider any potential structural issues. This includes the foundation, walls, and roof.Start by evaluating the foundation. Check for any signs of damage or needed repairs, and consider whether the foundation is stable. Look for cracks, water damage, or uneven settling, which could indicate serious issues. A stable foundation is crucial for the overall integrity of the home.Next, evaluate the walls and roof. Check for any signs of damage or needed repairs, and consider whether the walls and roof are stable. Look for cracks, water stains, or signs of wear that could indicate underlying problems. A well-maintained roof protects the home from weather-related damage and can prevent costly repairs.Finally, consider the overall condition of the home’s structure. Think about whether there are any potential issues that could affect the home’s stability or safety. Addressing structural issues early can prevent more significant problems down the line and ensure the home’s longevity.Needed RepairsWhen evaluating a home, it’s essential to consider any needed repairs. This includes repairs to the systems and components, as well as any structural issues.Start by evaluating the systems and components. Check for any signs of damage or needed repairs, and consider whether the systems and components are well-maintained. Look for signs of wear or needed maintenance in the heating and cooling systems, electrical and plumbing systems, and appliances. Identifying these issues early can help you budget for repairs and avoid unexpected costs.Next, evaluate any structural issues. Check for any signs of damage or needed repairs, and consider whether the foundation, walls, and roof are stable. Look for water damage, leaks, or cracks that could indicate more significant problems. Addressing these issues promptly can prevent further damage and ensure the home’s safety.Finally, consider the overall condition of the home and whether there are any needed repairs. Think about whether the repairs are minor or major, and whether they will affect the home’s value or safety. By considering these factors, you can get a better understanding of the home and whether it’s the right fit for you.Don’t Forget Your Mortgage PreparationWhile touring houses is a thrill, being financially prepared is just as important. That’s where 719 Lending comes in. Our team in Colorado Springs specializes in helping both first-time homebuyers and current homeowners navigate mortgage options. Whether you’re eyeing a modern home in Castle Rock or a peaceful property in Pueblo, having your financing in order makes your offer more attractive to sellers.Get Pre-Approved: A pre-approval from 719 Lending shows sellers you’re serious and financially ready.Explore Loan Programs: Conventional, FHA, VA, or USDA—our local mortgage professionals (NMLS#1601989) will guide you to the best fit.Ask Questions: Whether you need clarity on down payments, interest rates, or closing costs, we have the answers.Pro Tips for a Successful House TourTo make the most of each tour, follow these additional best practices drawn from top real estate guides:Take Notes & PhotosAfter seeing multiple homes, details can blur together. Keep a checklist or snap photos to remember key features.Visit at Different TimesIf possible, drop by on a weekday and a weekend to see varying traffic patterns and noise levels.Use All Your SensesUnusual smells, squeaky floors, or water stains might indicate hidden issues like mold, pests, or prior leaks.Check for signs of a broken sewer line, such as unpleasant odors and wet spots in the yard.Ask the Right QuestionsInquire about average utility costs, age of major appliances, and any ongoing or planned construction in the area.Attend open houses for a relaxed viewing experience without the pressure of a private showing.Look at Exterior DetailsInspect the gutters, siding, and yard drainage. Proper upkeep of these elements often indicates a well-maintained property overall.Ready to Take the Next Step?If you’re touring homes in Colorado Springs or anywhere in Colorado, let 719 Lending be your trusted mortgage partner. We have the local expertise to guide you through the process from start to finish.Check out our Home Loan Options to see how we can help you secure the financing you need. Or, if you prefer a one-on-one conversation, contact us to speak with a loan officer today!FAQ1. What should I do if I find issues during a house tour?It depends on the severity. Small issues can often be negotiated in the closing price or handled through seller concessions. Major issues might require walking away or requesting repairs before finalizing your purchase.2. Why is getting pre-approved important?Pre-approval shows sellers you’re financially prepared. This can give you an edge in competitive markets like Colorado Springs real estate, where buyers who can move quickly often secure the best properties.3. How do I know if the neighborhood is a good fit?Spend time exploring the area and talk to neighbors. Check commute times, local amenities, and neighborhood safety reports. First-hand experience will help you decide if it suits your lifestyle and long-term plans.4. What should I consider when I tour a house?When you tour a house, preparation is key. Bring a checklist of questions to ask, such as the age of the roof and the condition of the plumbing. Look out for red flags like water damage or structural issues. Ensure you have essential items like a flashlight and a camera to document any concerns. This thorough evaluation will help you make an informed decision.Final ThoughtsTouring a home is an exciting milestone in your search for the perfect property. By evaluating the home’s structure, keeping an eye out for maintenance issues, and considering the neighborhood carefully, you’ll make a more confident decision. Most importantly, partnering with 719 Lending in Colorado Springs ensures you’ll have expert guidance on mortgages and financial planning—every step of the way.This blog post is for informational purposes only and does not constitute financial advice. Please consult a licensed mortgage professional for individualized guidance. NMLS#1601989. Equal Housing Lender.The post What to Look for When Touring a House appeared first on 719 Lending.

Considering a VA loan in Colorado Springs? In this post, we’ll explore the key benefits and drawbacks of VA loans and show you how 719 Lending can help you navigate the process in Colorado.What You’ll Learn About VA MortgageWhat a VA loan is and why it’s valuableThe most important pros and cons to considerExpert tips for deciding if a VA loan is right for your Colorado Springs home purchaseHow 719 Lending can guide you every step of the wayWhat Is a VA Loan?A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs. It’s designed to help eligible service members, veterans, and surviving spouses become homeowners. VA loans can also be used for purchase loans, offering favorable terms and competitive interest rates for those looking to buy a property. VA loans serve as a significant financial benefit for veterans and active service members. While these loans are backed by the U.S. Department of Veterans Affairs, they are issued by private lenders like banks and mortgage companies. Unlike some other types of home loans, VA loans often allow you to purchase real estate with no down payment, which can be a game-changer in Colorado’s competitive housing market.Moreover, these loans usually come with competitive interest rates and offer significant savings over the life of the mortgage. According to the U.S. Department of Veterans Affairs, the program aims to help veterans secure reliable and affordable financing.VA Loan EligibilityUnderstanding VA loan eligibility is essential to unlocking the va home loan benefit. To qualify for a VA-backed home loan, you must meet specific active duty service requirements, which vary depending on when you served. For service members, this typically means at least 90 continuous days of active duty service. Veterans have different minimum active-duty service requirements based on their service period. National Guard and Reserve members also have distinct criteria to meet.In addition to fulfilling the active duty service requirements, you must meet your lender’s credit and income standards. A crucial document in this process is the Certificate of Eligibility (COE). This certificate proves to your lender that you qualify for a VA direct or VA-backed loan. You can request a COE to determine your eligibility for a VA home loan, ensuring you can take full advantage of this valuable benefit.VA Loan ProcessStep-by-step Guide to Applying for a VA LoanApplying for a VA loan involves several steps, each crucial to securing your VA-backed home loan. Here’s a detailed guide to help you navigate the process:Determine Your Eligibility: First, check if you meet the VA’s eligibility requirements, which depend on your service history and duty status. This step is essential to ensure you qualify for the VA home loan benefit.Obtain a Certificate of Eligibility (COE): Request a COE from the VA. This certificate is vital as it proves to your lender that you qualify for a VA-backed home loan.Choose a Lender: Select a private lender experienced with VA loans. Working with a knowledgeable lender can simplify the process and help you get the best terms.Get Pre-approved: Provide your financial information to your chosen lender to get pre-approved for a VA loan. This step gives you a clear idea of your budget and strengthens your position when making an offer on a home.Find a Home: Search for a home that meets your needs and budget. Ensure the property meets VA standards to avoid any issues during the appraisal process.Submit Your Loan Application: Complete your loan application with your lender, including all required documents and paperwork.Processing and Underwriting: Your lender will process and underwrite your loan application, verifying all information and ensuring you meet all requirements.Closing: Once approved, you’ll close on your loan and receive the keys to your new home. Congratulations, you’re now a homeowner!Required Documents and PaperworkTo apply for a VA loan, you’ll need to gather several important documents. Here’s a checklist to help you prepare:Certificate of Eligibility (COE): This document from the VA proves your eligibility for a VA loan.DD Form 214: Your discharge paperwork from the military, which details your service history.Identification: A valid government-issued ID, such as a driver’s license or passport.Income Documentation: Recent pay stubs, W-2 forms, and tax returns to verify your income.Credit Reports: Your credit reports from the three major credit bureaus to assess your creditworthiness.Appraisal: An appraisal of the property you’re purchasing to ensure it meets VA standards and is valued correctly.Timeline for VA Loan ApprovalThe timeline for VA loan approval can vary, but here’s a general outline of what to expect:Pre-approval: 1-3 days. This initial step is relatively quick and gives you a budget range.Loan Application: 1-2 weeks. Completing and submitting your loan application can take some time, depending on how quickly you gather your documents.Processing and Underwriting: 2-4 weeks. During this phase, your lender will verify all information and ensure you meet all requirements.Closing: 1-2 weeks. Once approved, you’ll move to the closing stage, where you’ll sign the final paperwork and receive the keys to your new home.Total Timeline: 6-12 weeks. This timeframe can vary based on individual circumstances and lender efficiency.Pros of VA Loans1. Zero Down PaymentOne of the biggest benefits of a VA loan is the potential to purchase a Colorado Springs home with no money down. This advantage can help first-time and experienced homebuyers alike. It allows you to preserve your savings for other important expenses, such as moving costs or home improvements.2. Competitive Interest RatesThe VA guarantee often leads to lower interest rates. Over time, this can mean less money spent on interest and more financial flexibility for homeowners. If you’re purchasing Colorado Springs real estate, saving on interest rates can reduce the total monthly payment amount, helping you manage other household expenses more comfortably.3. No Private Mortgage Insurance (PMI)Most conventional loans require PMI if you put down less than 20%. However, VA loans do not require monthly PMI. You may still need to pay a one-time funding fee, but you won’t have an ongoing insurance cost added to your monthly mortgage payment. VA loans also often have lower closing costs compared to traditional loans, which can provide additional financial relief. This often lowers your overall housing costs.4. Lenient Credit RequirementsMany mortgage programs require a certain credit score threshold. VA loans tend to be more lenient, which means service members or veterans with lower scores might still qualify. This flexibility can open doors for homebuyers who might otherwise face hurdles in the mortgage process.5. Lifetime BenefitOnce you qualify, you can use the VA loan benefit multiple times, provided you restore your entitlement. This means you’re not limited to using it for just one home purchase. This flexibility is beneficial if you plan to move around Colorado or within Colorado Springs.Cons of VA Loans1. VA Funding FeeAlthough there’s no monthly mortgage insurance, you’ll typically pay a one-time funding fee. This fee varies based on factors like down payment size and your military service category. While the fee can be financed into the loan, it adds to the overall cost. Check the Consumer Financial Protection Bureau (CFPB) for more information on common mortgage fees.2. Property RequirementsHomes financed with a VA loan must meet specific property standards. These requirements protect homebuyers from major structural problems. Yet, these standards might limit your choice of properties, especially if you’re considering a fixer-upper in Colorado Springs.3. Limited to Primary ResidencesA VA loan must be used for your primary residence. If you’re looking to buy a second home or an investment property in Colorado, you’ll need another type of financing. This rule may not be a major drawback, but it’s important to know if you have broader real estate goals.4. Funding Fee Exemptions VaryNot every veteran or service member qualifies for a funding fee exemption. However, borrowers with a service-related disability may be exempt from the VA funding fee, which is typically paid to the Department of Veterans Affairs to support future VA loans. For those who do not qualify, the fee can be significant. It’s important to speak with a mortgage professional at 719 Lending to understand your eligibility and potential savings.VA Loans vs. Conventional LoansKey Differences Between VA and Conventional LoansWhen comparing VA loans to conventional loans, several key differences stand out:Down Payment: VA loans do not require a down payment, making homeownership more accessible for eligible service members, veterans, and surviving spouses. In contrast, conventional loans typically require a down payment of 5-20%.Private Mortgage Insurance (PMI): VA loans do not require PMI, even if you put down less than 20%. Conventional loans, however, require PMI if the down payment is less than 20%, adding to your monthly mortgage payments.Interest Rates: VA loans often come with lower interest rates compared to conventional loans, potentially saving you thousands over the life of the loan.Credit Score Requirements: VA loans have more lenient credit score requirements, making it easier for those with lower scores to qualify. Conventional loans usually have stricter credit score thresholds.Debt-to-Income Ratio: VA loans offer a more lenient debt-to-income ratio, allowing you to qualify even if you have higher existing debt. Conventional loans typically have stricter debt-to-income requirements.Funding Fee: VA loans require a funding fee, which can be financed into the loan. This fee helps support the VA loan program. Conventional loans do not have this fee but may have other costs.Loan Limits: VA loans do not have loan limits, giving you more flexibility in your home purchase. Conventional loans have loan limits that vary by location and can restrict your borrowing capacity.Overall, VA loans offer significant benefits, including lower interest rates, no down payment, and no PMI, making them an attractive option for eligible service members, veterans, and surviving spouses. Understanding these differences can help you make an informed decision about which loan type best suits your needs.Types of VA LoansThe VA offers a variety of loan programs to suit different needs, making it easier for veterans and service members to find the right fit. Here are some of the main types of VA loans available:Purchase and Refinance Mortgages: VA loans can be used to buy a new home or refinance an existing mortgage, offering flexibility whether you’re entering the housing market or looking to improve your current loan terms. Refinance loans offer low rates and emphasize the need for compliance with VA rules and guidelines, including potential fees and the impact of interest rates.Rehab and Renovation Loans: These loans allow you to finance home repairs and renovations, making it possible to turn a fixer-upper into your dream home.Energy Efficiency Mortgages: If you’re looking to make your home more energy-efficient, VA loans can help finance these improvements, potentially lowering your utility bills and increasing your home’s value.VA IRRRL (Interest Rate Reduction Refinance Loan): This option lets you refinance an existing VA loan to secure a lower interest rate, reducing your monthly mortgage payments and overall loan cost.VA Cash-Out Refinance: This loan type allows you to refinance your existing VA loan and take out cash from your home’s equity, providing funds for various needs, from home improvements to debt consolidation.These are just a few examples of the types of VA loans available. It’s essential to research and understand the different options to determine which one best suits your situation.Is a VA Loan Right for You in Colorado Springs?Deciding if a VA loan suits your needs depends on your financial situation, eligibility, and homeownership goals. If you want to buy in Colorado Springs with zero down and minimize monthly costs, a VA loan can be a powerful tool. However, it’s essential to understand the property standards and the funding fee implications.Here’s what you need to know next: Consult with a local mortgage broker at 719 Lending. Our knowledge of Colorado Springs real estate means we can guide you toward a successful home purchase. We’ll help you compare various loan programs to ensure you choose the best option.FAQs About VA Loans1. Can I use a VA loan more than once?Yes, you can reuse your VA entitlement as long as you restore it after selling or refinancing your current VA-financed property. You can find more details about eligibility on the U.S. Department of Housing and Urban Development (HUD) website.2. How long does it take to close a VA loan?Closing times can vary. Many VA loans close in the same timeframe as conventional loans. Having all necessary documentation ready and working with an experienced loan officer at 719 Lending can speed up the process.3. Am I exempt from the VA funding fee?Some borrowers—such as those receiving VA disability compensation—may be exempt. Your 719 Lending mortgage professional can confirm your eligibility and help you understand any exemption you might qualify for.How 719 Lending Can HelpReady to make your move in Colorado Springs? At 719 Lending, we specialize in VA loans and other mortgage options tailored to Colorado homebuyers. Our local experience and commitment to veterans set us apart. We’ll guide you through every step, from pre-qualification to closing.Want more info?Check out our Home Loan Options for a detailed look at the different programs available in Colorado. We can help you compare VA, FHA, and conventional loans so you choose the best match for your specific needs.Your Next StepIf you’re considering using a VA loan to buy a home in Colorado Springs, you don’t have to go it alone. Contact 719 Lending today to speak with a dedicated mortgage officer who understands the unique benefits of VA financing. Our friendly team is here to provide a seamless and positive experience, so you can focus on your new chapter in beautiful Colorado.(Disclaimer: This article is for informational purposes and does not constitute financial advice. Always consult with a qualified mortgage professional or financial advisor for personalized guidance.)The post VA Mortgage: Pros and Cons appeared first on 719 Lending.

VA Residual Income: Colorado Springs GuideAre you curious about how the Department of Veterans Affairs (VA) calculates your finances before granting a VA home loan? In this post, we’ll explain VA residual income and show you why it matters for homebuyers in Colorado Springs and throughout Colorado. We’ll also explore how 719 Lending can help you navigate this important requirement to secure the home of your dreams.What You’ll Learn from the VA Residual Income ChartWhat VA residual income is and why it’s crucial for VA home loansHow to calculate VA residual incomeThe minimum residual income guidelines for different family sizesWhy VA loans are so beneficial for Colorado Springs real estate purchasesHow 719 Lending can help you with your VA mortgage processUse this Calculator as a great resourceWhat Is VA Residual Income?VA residual income is the amount of money left over each month after you pay your major expenses. These expenses usually include principal and interest on your mortgage, property taxes, homeowners insurance, and basic utilities, and are subtracted from your net income. The VA uses this leftover amount to ensure you can afford essentials like groceries, gas, and other daily living costs once you have made your monthly mortgage payment. The VA’s minimum residual income serves as a guideline to ensure financial stability rather than a strict criterion for loan approval.Residual income is different from debt-to-income ratio (DTI). While DTI is an important measure of how much debt you carry compared to your gross monthly income, residual income focuses on how much cash remains after all major bills are paid. Because Colorado Springs living costs can differ from other parts of Colorado, calculating your monthly leftover funds accurately is key.Why Does the VA Require Residual Income?The VA wants to reduce the likelihood of borrowers defaulting on their mortgage. By making sure veterans and active-duty service members have enough money for everyday life after paying housing expenses, they lower the chance of financial hardship. This process supports long-term homeownership success and financial stability for you and your family.Additionally, many mortgage professionals see residual income requirements as a consumer-friendly approach. The VA’s minimum residual income acts as a guideline for evaluating a borrower’s financial health by showing what remains after expenses. It protects veterans from purchasing a home they cannot comfortably afford. Therefore, if you’re looking to purchase real estate in Colorado Springs, meeting the VA’s residual income guidelines helps you buy a home with greater financial confidence.How to Calculate Your Residual IncomeAlthough the exact residual income calculation can vary, you generally follow these steps:Determine Your Gross Monthly IncomeAdd up all stable and reliable sources of income. For example, base salary, any military allowances, or regular bonuses.Subtract Your Major ExpensesPrincipal, interest, taxes, and insurance (PITI) on your potential mortgageHomeowners association (HOA) dues, if applicableBasic utility costs, typically a set estimate determined by the VAAny other monthly debts (car payments, student loans, and credit card obligations)Check the ResultThe figure you’re left with is your estimated VA residual income. The VA then compares this amount against their guidelines, which can vary depending on where you live and how many dependents you have.It’s wise to speak with a knowledgeable VA loan officer or mortgage broker—like the team at 719 Lending—to verify your numbers. They will help you gather the right documents, calculate your expenses, and confirm you meet the required threshold for Colorado or the specific region of Colorado Springs.VA Residual Income ChartsUsing Charts to Determine RequirementsVA residual income charts are a crucial tool for determining the residual income requirements for VA loans. These charts are divided into four regions: Northeast, Midwest, South, and West. Each region has its own set of residual income requirements, which vary based on the loan amount and family size.To use the charts, borrowers need to first determine their geographic region and family size. Then, they can refer to the chart that corresponds to their loan amount (either below $80,000 or above $80,000). The chart will provide the minimum residual income requirement for their specific situation.For example, a family of four living in the Midwest with a loan amount of $150,000 would need to refer to the chart for the Midwest region and a loan amount above $80,000. According to the chart, their minimum residual income requirement would be $1,003.These charts are essential because they help ensure that borrowers have enough discretionary income left after paying their major expenses. By meeting the VA’s residual income requirements, you can demonstrate your ability to manage your finances effectivelyVA Residual Income Chart: What Are The VA Residual Income Requirements?A VA residual income chart shows the housing prices of where you’re purchasing your property, depending on the location and the number of members in your household. The chart also illustrates the income conditions that the VA requires, including residual income requirements for loans below $80,000.Residual Income by Region for Loan Amounts of $79,999 and BelowFamily SizeNortheastMidwestSouthWest1$390$382$382$4252$654$641$641$7133$788$772$772$8594$888$868$868$9675$921$902$902$1004Over 5Add $75 for each additional member up to a family of seven.Residual Income by Region for Loan Amounts of $80,999 and AboveFamily SizeNortheastMidwestSouthWest1$450$441$441$4912$755$738$738$8233$909$889$889$9904$1,025$1,003$1,003$1,1175$1,062$1,039$1,039$1,158Over 5Add $80 for each additional member up to a family of seven.Key Geographic Regions for VA Residual Income ChartsRegionStatesNortheastConnecticut, Maine, Massachusetts New Hampshire, New Jersey, New York, Pennsylvania, Rhode, Island, VermontMidwestIllinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, WisconsinSouthAlabama, Arkansas, Delaware, DC, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, Puerto Rico, South Carolina, Tennessee, Texas, Virginia, West VirginiaWestAlaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, WyomingDebt-to-Income (DTI) RatioUnderstanding DTI Ratio for VA LoansThe debt-to-income (DTI) ratio is a critical factor in determining a borrower’s eligibility for a VA loan. The DTI ratio is calculated by dividing the borrower’s total monthly debt payments by their gross monthly income.The VA generally recommends a DTI ratio of 41% or lower, including the mortgage payment. However, borrowers with a DTI ratio above 41% may still be eligible for a VA loan if they meet certain compensating factors, such as a high credit score or a low loan-to-value ratio.It’s essential to note that the DTI ratio is not the only factor considered in the VA loan approval process. Lenders will also review the borrower’s credit history, income, and residual income to determine their overall creditworthiness. By maintaining a healthy DTI ratio, you can improve your chances of securing a VA loan and achieving your homeownership goals.Residual Income vs. DTIHow Residual Income and DTI InteractResidual income and DTI are two interconnected concepts in the VA loan approval process. While DTI measures the percentage of a borrower’s income that goes towards debt payments, residual income measures the amount of money left over after paying debts.In general, a high DTI ratio can negatively impact a borrower’s residual income. This is because a larger portion of their income is going towards debt payments, leaving less money available for other expenses.However, borrowers with a high DTI ratio may still be eligible for a VA loan if they have a high residual income. This is because the VA considers residual income as a secondary factor in determining loan eligibility.For example, a borrower with a DTI ratio of 43% may still be eligible for a VA loan if their residual income exceeds the regional residual income requirement by at least 20%. This is because the borrower has demonstrated that they have sufficient income to cover their debt payments and still have money left over for other expenses.Understanding how residual income and DTI interact can help you better prepare for the VA loan application process. By managing your debt and ensuring you have enough residual income, you can improve your chances of securing a VA loan and achieving your homeownership dreams.VA Residual Income GuidelinesThe VA home loan has a residual income chart that shows the minimum requirement based on your family size and your home’s location. Colorado Springs typically falls within the same guidelines as other parts of the Midwest/West region. Here’s a simplified look at how it might break down:1-2 dependents: A specific monthly leftover requirement3-4 dependents: A higher monthly leftover requirement5 or more dependents: An even larger monthly leftover requirementVA’s minimum residual income serves as a guideline to ensure borrowers have enough money left over after major expenses.For a detailed chart, you can review the guidelines from the U.S. Department of Veterans Affairs. Keep in mind, these numbers can change over time. Checking the most recent requirements helps you stay up to date. Remember, 719 Lending is here to guide you through these calculations so you know exactly where you stand.Exemptions and ExceptionsSituations Where Exemptions May ApplyIn certain situations, lenders may exempt family members from the residual income calculation or adjust the family size to provide a more accurate measure of financial capacity. These exemptions are designed to ensure that the residual income calculation reflects the borrower’s true financial situation.Some situations where exemptions may apply include:Family members with financial support from other sources, such as alimony or child supportFamily members with income from employment or self-employment that is not included in the borrower’s gross incomeFamily members with financial obligations that reduce their disposable income, such as student loan payments or credit card debtFamily members who are not financially dependent on the borrower, such as adult children who are financially independentLenders may also consider other factors when evaluating residual income, such as the borrower’s credit history, debt-to-income ratio, and overall financial stability. These exemptions and adjustments help create a more accurate picture of the borrower’s financial health, ensuring that the residual income calculation is fair and reflective of their actual financial situation.VA Loan Approval ProcessHow Residual Income Is EvaluatedWhen evaluating a VA loan application, lenders will typically consider the borrower’s residual income as part of the overall approval process. Here’s how residual income is evaluated:Calculate Gross Monthly Income: The lender will calculate the borrower’s gross monthly income, including all sources of income.Subtract Monthly Debt Payments: The lender will then subtract the borrower’s monthly debt payments, including the proposed mortgage payment, from the gross monthly income.Determine Residual Income: The resulting amount is the borrower’s residual income, which is the amount of money left over each month after paying all debts.Compare to VA Guidelines: The lender will then compare the borrower’s residual income to the VA’s minimum residual income guidelines, which vary by region and family size.Approval Decision: If the borrower’s residual income meets or exceeds the VA’s minimum guidelines, the lender may consider the loan application approved. However, if the borrower’s residual income is below the VA’s minimum guidelines, the lender may consider other factors, such as the borrower’s credit history and debt-to-income ratio, to determine whether to approve the loan.This thorough evaluation process ensures that borrowers have enough residual income to cover their living expenses and maintain financial stability, which is crucial for long-term homeownership success.Consequences of Low Residual IncomeOptions for BorrowersIf a borrower’s residual income is below the VA’s minimum guidelines, it may be more difficult to qualify for a VA loan. However, there are options available to borrowers who are struggling to meet the residual income requirements.Some options for borrowers with low residual income include:Consider a Smaller Loan Amount: Opting for a smaller loan amount or a longer loan term can reduce the monthly mortgage payment, making it easier to meet the residual income requirements.Provide Additional Documentation: Providing additional documentation to support the loan application, such as proof of income or assets, can help strengthen the case for loan approval.Work with Flexible Lenders: Some lenders may offer more flexible residual income guidelines, making it easier to qualify for a VA loan.Explore Alternative Loan Options: Borrowers can explore alternative loan options, such as an FHA loan or a conventional loan, which may have different residual income requirements.Seek Professional Assistance: Working with a mortgage broker or financial advisor can help borrowers navigate the loan process and identify potential solutions to improve their financial situation.It’s worth noting that the VA’s residual income guidelines are in place to ensure that borrowers have enough money left over each month to cover their living expenses and avoid financial hardship. Borrowers who are struggling to meet the residual income requirements may want to consider seeking the assistance of a financial advisor or credit counselor to help improve their financial situation. By taking proactive steps, borrowers can enhance their financial health and increase their chances of securing a VA loan.Benefits of VA Loans in Colorado SpringsYou might be wondering why VA loans are so popular among service members and veterans in Colorado Springs. Here are a few top reasons:No Down Payment Needed: Qualified borrowers can often buy a home without making a down payment.No Private Mortgage Insurance (PMI): Unlike many other loan types, a VA loan typically does not require costly PMI.Competitive Interest Rates: The VA loan program often provides lower rates, helping borrowers save money over the life of the loan.Flexible Credit Requirements: The VA is often more forgiving of past credit issues when compared to traditional lenders.Because of these perks, many Colorado Springs homebuyers see VA loans as a great path to homeownership. Even better, the focus on residual income means you have a financial cushion after covering your monthly mortgage payments, which benefits your overall quality of life in Colorado.Steps to Secure a VA Loan with 719 LendingAre you ready to explore your options? Here’s how you can work with 719 Lending to get started:Pre-QualificationTalk to one of our mortgage professionals. We’ll discuss your income, expenses, and home-buying goals. We can also provide insight into your potential residual income to ensure you meet the VA guidelines.Gather DocumentationYou’ll likely need to present pay stubs, tax returns, and proof of military service. Don’t worry; our loan officers will give you a checklist of everything to compile.Residency and Financial CheckOnce we’ve reviewed your documents, we’ll confirm you meet the VA’s residual income standards and other requirements.Home SearchWith a pre-approval in hand, you can confidently look for Colorado Springs real estate that fits your budget.Underwriting and ClosingWe guide you step by step, from underwriting to the closing table. Our goal is to ensure a smooth experience so you can move into your new home with ease.FAQ on VA Residual Income1. What if I Don’t Meet the Residual Income Requirement?You might improve your residual income by reducing your monthly debt or increasing your income. Consider paying down credit cards or consolidating debts. Sometimes, lowering the loan amount or choosing a property with lower taxes can also help.2. Does the Number of Dependents Affect the Requirements?Yes. The more dependents you have, the higher your monthly leftover requirement will be. This ensures your family has sufficient funds for day-to-day living.3. Do I Need Perfect Credit to Get a VA Loan?Not necessarily. The VA program often allows more flexibility in credit scores. However, you’ll still need to show responsible financial habits. Talk to our team at 719 Lending for personalized guidance.External ResourcesFor more official guidance and deeper reading:VA HandbookConsumer Financial Protection Bureau – Offers articles on homebuying and mortgage best practices.U.S. Department of Veterans Affairs – The official VA page outlining home loan benefits.U.S. Department of Housing and Urban Development (HUD) – Provides broad information on homeownership and programs for buyers.Ready to Get Started?If you’re planning to buy in Colorado Springs or elsewhere in Colorado, understanding VA residual income is crucial. 719 Lending is here to help you make sense of the guidelines and walk you through the application process. We’re your go-to mortgage lender for VA loans, and our friendly team can’t wait to serve you.Check out our Home Loan Options to explore what programs might work best for you. Or, contact us today to discuss your situation with an experienced loan officer.By focusing on residual income, the VA ensures you can live comfortably in your new Colorado home. At 719 Lending, we believe buying a home should be a positive, empowering experience—especially for those who have served our country. Let us guide you every step of the way, so you can enjoy the benefits of homeownership with total peace of mind.Remember: Always confirm the numbers and guidelines with an experienced VA-approved lender or the official VA website.The post VA Loan Residual Income Explained appeared first on 719 Lending.

Looking to build your dream home as a veteran? A VA construction mortgage can help you get started with no down payment and no PMI. This guide walks you through the benefits, eligibility, and steps to secure a VA construction mortgage.Key TakeawaysVA construction mortgages offer benefits such as no down payment and the elimination of Private Mortgage Insurance (PMI), making them an accessible option for eligible veterans.Key eligibility criteria for VA construction loans include a minimum credit score of 620, a debt-to-income ratio of less than 41%, and proof of steady income over the past two years.There are two main types of VA construction loans: Single-Close Loans, which streamline the process with a single closing, and Construction-to-Permanent Loans, which involve two closings but offer flexibility.Understanding VA Construction MortgagesVA construction mortgages serve as a vital financing solution for building custom homes for eligible veterans. These loans are specifically designed to cover the costs associated with constructing a new, personalized home. Unlike traditional construction loans, VA construction mortgages often come with compelling advantages that make homeownership more affordable and streamline the construction process.One of the most notable benefits of VA construction loans is that, generally, no down payment is required. This feature alone makes these loans highly attractive to veterans looking to build their dream homes without the burden of upfront costs. Additionally, the streamlined process ensures fewer financial hurdles and a smoother path to homeownership.Moreover, VA construction loans eliminate the need for Private Mortgage Insurance (PMI), reducing the overall cost of financing. This is particularly beneficial for veterans who may not have substantial savings but still wish to invest in a high-quality, custom-built home. Recognizing the unique advantages of VA construction loans helps veterans appreciate the value these loans bring to their home-building journey.Key Eligibility Criteria for VA Construction MortgagesSecuring a VA construction loan involves meeting specific eligibility criteria designed to ensure borrowers are financially capable of managing the loan. First and foremost, veterans must have a credit score of at least 620 to 640 to improve their chances of eligibility. This requirement helps lenders assess the borrower’s creditworthiness and ability to repay the loan.Another critical factor is the debt-to-income ratio, which should be less than 41% to qualify for a VA construction mortgage. This ratio ensures that borrowers do not have excessive debt relative to their income, making them more likely to manage their mortgage payments effectively. Additionally, applicants must demonstrate two years of steady income and employment history to prove financial stability.Borrowers must also not have filed for bankruptcy in the previous two years. The completed home must serve as the borrower’s primary residence, and eligible properties include single-family homes, certain condominium units, and manufactured homes. These criteria are vital for veterans seeking to benefit from VA construction loans.Types of VA Construction Mortgages VA construction loans come in two primary types: Single-Close Loans and Construction-to-Permanent Loans. The Single-Close Loan combines construction financing and the permanent mortgage into one loan with a single closing, streamlining the entire process. This type of loan is highly beneficial for veterans as it reduces both costs and paperwork.On the other hand, Construction-to-Permanent Loans require two loan closings — one for the construction phase and another for converting to a permanent mortgage. This option provides flexibility but involves more steps and potentially higher costs.Regardless of the type, VA construction loans typically offer competitive interest rates and eliminate the need for Private Mortgage Insurance (PMI), making them an attractive financing option for veterans.Steps to Obtain a VA Construction MortgageSecuring a VA construction mortgage requires several important steps. First, eligible veterans must obtain a Certificate of Eligibility (COE), which serves as proof of their entitlement to VA benefits.The VA One-Time Close Construction Loan is a popular option that combines financing for construction, lot purchase, and the permanent mortgage into a single loan with one closing, eliminating the need for multiple closings and reducing overall costs. Locked-in interest rates before construction begins provide stability for borrowers, especially when working with a construction and valuation unit.Despite the streamlined process, VA construction loans can be complex, requiring careful preparation and understanding of VA loan requirements to ensure a smooth application process. Let’s break down these steps further.Obtaining Your Certificate of EligibilityThe first step in securing a VA construction mortgage is obtaining a Certificate of Eligibility (COE). This document is essential as it proves your entitlement to VA benefits and is required by lenders to proceed with the loan application. Veterans can request a COE online through the VA’s eBenefits portal, through their lender, or by mailing a specific form.Active-duty service members need a signed statement of service from their commanding officer to apply for a COE. Getting the COE early in the process streamlines subsequent steps, ensuring you have the necessary documentation to proceed confidently.Finding a VA-Approved LenderThe next key step is finding a VA-approved lender. Not all lenders offer this specialized service, so it’s essential to search for those who do. Look for lenders that specialize in both construction loans and VA loans to ensure they understand the specific requirements and can navigate the complexities of VA financing.Local banks, credit unions, and major VA lenders are viable options for obtaining VA construction loans. Working with a VA-approved lender ensures that all aspects of the loan comply with VA regulations, making the process smoother and more efficient.Preapproval ProcessSecuring a VA construction mortgage involves a critical preapproval process. This process typically requires documentation of income, employment history, and creditworthiness to ensure you meet both VA and lender-specific credit standards. Providing income verification, tax returns, and other necessary documentation can expedite the preapproval process.Fulfilling these requirements boosts your chances of securing the loan and helps establish a clear financial picture for both you and the lender.Once preapproved, you can confidently move forward with the construction process, knowing you have the necessary financing in place.Working with VA Registered BuildersSelecting the right builder is vital when using a VA construction loan. Only builders registered with the VA can participate in the VA Loan Guaranty Program, which is essential for using VA financing. Working with a builder experienced in both construction and VA loans can reduce complications and ensure compliance with VA standards.To verify a builder’s VA registration, access the Lists of VA Registered Builders through the Veterans Information Portal. An experienced va builder id number can navigate the complexities of VA financing, ensuring a smoother construction process and helping you avoid common pitfalls. Additionally, you can check the builder ids for further verification.The Construction PhaseThe construction phase is a crucial part of the process, where funds are released in stages as construction progresses. These releases are contingent upon successful inspections at critical phases, such as after the foundation is laid and upon completion of framing. Regular communication with lenders and builders can help mitigate issues and delays, ensuring a smooth construction process.The final inspection ensures the home adheres to the construction plans and meets all VA property requirements. Planning for unexpected delays and maintaining a budget cushion can alleviate stress during construction, making the entire process more manageable.Converting to a Permanent VA MortgageOnce the construction is complete and the final inspection is passed, the next step is converting the construction loan into a permanent VA mortgage. This transition is necessary to finalize the financing and secure your new home. The conversion process can be complicated and may require significant time to complete, but it’s a crucial step to ensure your home is fully financed under the VA program.This final phase completes the financial aspect of your home and marks the beginning of life in your custom-built home, fully financed with VA benefits.Common Challenges and How to Overcome ThemSecuring a VA construction loan comes with its set of challenges. One common issue is the difficulty in finding lenders that offer these specialized loans. Veterans facing this problem should consider alternative financing options or expand their search to include local banks and credit unions.Another challenge is navigating the complexities of the loan process itself. Preparing all necessary documentation early on helps mitigate these issues. By being proactive and informed, veterans can overcome these challenges and successfully secure a VA construction loan.Alternatives to VA Construction MortgagesWhile VA construction loans offer significant benefits, some veterans may explore alternatives like FHA loans or conventional loans. FHA loans require a minimum down payment of 3.5%, which is higher than the no down payment typical of VA loans. However, FHA loans can be a viable option for those who prefer not to use their VA home loan entitlement.Conventional loans are another alternative but often involve stricter credit and down payment requirements. Each option has its pros and cons, and veterans should carefully consider their financial situation and long-term goals before making a decision.SummaryIn summary, VA construction mortgages provide a unique and beneficial financing option for eligible veterans looking to build custom homes. From understanding the types of loans available to navigating the construction phase and converting to a permanent VA mortgage, this guide has covered all essential steps. By being informed and prepared, veterans can take full advantage of these loans and achieve their dream of homeownership.Frequently Asked QuestionsWhat is a VA construction mortgage?A VA construction mortgage is a loan tailored for eligible veterans that facilitates the financing of constructing a new, custom-built home. This type of mortgage supports veterans in achieving homeownership through the construction of properties meeting their specific needs.What are the eligibility criteria for a VA construction loan?To qualify for a VA construction loan, you must meet specific criteria, including a credit score between 620 and 640, a debt-to-income ratio of less than 41%, two years of steady income, and no bankruptcy filings in the past two years. Ensuring you meet these requirements is crucial for a successful application.What are the types of VA construction loans available?The two primary types of VA construction loans are Single-Close Loans, which integrate construction financing and a permanent mortgage into a single loan with one closing, and Construction-to-Permanent Loans, necessitating two separate closings. Each option serves different financing needs for prospective homeowners.How do I find a VA-approved lender?To find a VA-approved lender, search for lenders that specialize in VA loans, including local banks, credit unions, and recognized VA lenders. This will ensure you access appropriate financing options tailored to your needs.What are some common challenges in securing a VA construction loan?Securing a VA construction loan often involves challenges such as identifying lenders that provide these loans and navigating the intricate loan process, necessitating thorough preparation and familiarity with VA loan requirements.The post How to Secure a VA Construction Mortgage for Your New Home appeared first on 719 Lending.

Are you curious about FHA mortgage insurance and how it affects your home loan in Colorado Springs? Understanding the mortgage insurance premium rates is crucial for evaluating the overall cost of your FHA mortgage insurance. In this post, we’ll explain what FHA mortgage insurance is, how it works, when it can be canceled, and why it’s an important factor for many Colorado homebuyers. Let’s dive in so you can understand your options and make informed decisions with 719 Lending by your side.What Is FHA Mortgage Insurance?FHA mortgage insurance is a policy that protects lenders when they issue loans backed by the Federal Housing Administration (FHA). It’s designed to encourage mortgage professionals to offer loans to buyers who might not qualify for conventional mortgages by meeting FHA mortgage insurance requirements—often due to lower credit scores or smaller down payments.FHA mortgage insurance is mandatory for loans secured through FHA-approved lenders, who must disclose the costs associated with this insurance during the loan estimation process.In exchange for this extra security, FHA borrowers pay a mortgage insurance premium (MIP). Because FHA loans can be more accessible to first-time homebuyers, these MIP costs help ensure lenders remain confident in issuing these loans.What is Mortgage Insurance?Mortgage insurance is a type of insurance that protects lenders against losses resulting from defaults on home mortgages. It is typically required for borrowers who make a down payment of less than 20% of the purchase price of the home. Mortgage insurance can be either private mortgage insurance (PMI) or government-backed insurance, such as Federal Housing Administration (FHA) mortgage insurance. To better understand your potential costs, you can use an FHA mortgage insurance calculator to estimate your premiums.Private mortgage insurance is usually associated with conventional loans, while FHA mortgage insurance is provided by the Federal Housing Administration (FHA). The FHA mortgage insurance is designed to make homeownership more accessible, especially for those with lower credit scores or smaller down payments. By offering this insurance, the Federal Housing Administration helps ensure that lenders are willing to approve loans for a broader range of borrowers.Protects the lender in case of borrower defaultMortgage insurance plays a crucial role in protecting the lender if the borrower defaults on their mortgage payments. If the borrower fails to make their mortgage payments, the lender can file a claim with the mortgage insurance company to recover some or all of the losses. This safety net reduces the risk for the lender, making them more likely to offer loans to borrowers who might not meet the stringent requirements of conventional loans.For borrowers, this means that mortgage insurance can open doors to homeownership that might otherwise remain closed. By mitigating the lender’s risk, mortgage insurance allows for more flexible lending criteria, which can be particularly beneficial in competitive housing markets like Colorado Springs. In some cases, borrowers may be eligible for an FHA mortgage insurance refund if they refinance their loan.Required for FHA loans with low down paymentsFHA loans with low down payments, typically less than 20% of the purchase price, require mortgage insurance premiums (MIP) to protect the lender against potential losses. The Federal Housing Administration (FHA) mandates both upfront and annual mortgage insurance premiums for all borrowers, regardless of the down payment amount.The upfront mortgage insurance premium (UFMIP) is a one-time fee paid at closing, usually amounting to 1.75% of the loan amount. This fee can be paid in full at closing or financed into the loan, which will increase the overall cost of the loan. On the other hand, the annual mortgage insurance premium (MIP) is a recurring charge that is divided into monthly installments and added to your mortgage payments.The cost of these mortgage insurance premiums varies based on several factors, including the loan amount, loan term, and loan-to-value (LTV) ratio. Borrowers with lower credit scores or higher debt-to-income ratios may face higher mortgage insurance premiums.To estimate your mortgage insurance premiums, you can use an FHA mortgage calculator. This tool helps you explore different scenarios and understand how various factors affect your premiums. It’s also essential to carefully review the terms and conditions of your FHA loan, including the mortgage insurance premiums, before signing the loan agreement.Shopping around for FHA-approved lenders can also be beneficial. Different lenders may offer varying rates and terms, including mortgage insurance premiums, so comparing options can help you find the best deal. The FHA provides resources and tools, such as the FHA Mortgage Insurance Premium (MIP) Calculator, to help borrowers understand and manage their mortgage insurance premiums.For personalized guidance, consider contacting FHA-approved lenders or housing counseling agencies. They can provide valuable insights and help you navigate the mortgage insurance premium requirements for FHA loans, ensuring you make informed decisions about your home loan.How FHA Mortgage Insurance Premiums WorkFHA mortgage insurance typically has two parts:Upfront Mortgage Insurance Premium (UFMIP): This is a one-time fee due at closing. Most FHA loans charge 1.75% of the loan amount for UFMIP. You can either pay this amount in full at closing or roll it into your loan balance.Annual Mortgage Insurance Premium (Annual MIP): This is a yearly fee broken down into monthly payments. Your exact rate depends on factors like your loan amount and term length (often 15 or 30 years). Most borrowers pay between 0.45% and 1.05% of the loan amount as an annual premium. Annual mortgage insurance premiums (MIP) protect lenders from losses due to borrower defaults and have seen recent adjustments to costs, affecting borrowers. Borrowers who refinance their FHA loans may be eligible for an FHA mortgage insurance premium refund.Here’s what you need to know next: These premiums can make your monthly payments higher than a conventional loan’s private mortgage insurance (PMI). However, the trade-off is that FHA loans are generally easier to qualify for, especially in competitive housing markets like Colorado Springs.Official FHA ResourcesHUD’s Official Guidelines For FHA Mortgage InsuranceFHA Requirements For Mortgage InsuranceFHA Mortgage Insurance Premium Chart – A detailed chart outlining the different premium rates based on loan terms and amounts.Calculating Mortgage Insurance PaymentsCalculating mortgage insurance payments can be complex, as it depends on several factors, including the loan amount, loan term, and loan-to-value (LTV) ratio. Here are the general steps to calculate mortgage insurance payments:Determine the Loan Amount and Loan Term: Start by identifying the total loan amount and the length of the loan term.Calculate the LTV Ratio: Divide the loan amount by the purchase price of the home to get the LTV ratio.Determine the Mortgage Insurance Premium Rate: Based on the LTV ratio and loan term, find the applicable FHA mortgage insurance premium rates.Calculate the Annual Mortgage Insurance Premium: Multiply the loan amount by the premium rate to get the annual mortgage insurance premium.Calculate the Monthly Mortgage Insurance Premium: Divide the annual premium by 12 to determine the monthly mortgage insurance premium.For example, let’s say you purchase a home for $200,000 with a 10% down payment ($20,000) and a 30-year FHA loan. The loan amount is $180,000, and the LTV ratio is 90%. If the mortgage insurance premium rate is 0.85% per year, the annual mortgage insurance premium would be $1,530 ($180,000 x 0.85%), and the monthly premium would be $127.50 ($1,530 ÷ 12).It’s important to note that mortgage insurance premiums can vary depending on the lender and the specific loan program. Borrowers should carefully review their loan terms and conditions to understand their mortgage insurance obligations fully. By doing so, they can better manage their mortgage payments and plan for the future.When Can FHA Mortgage Insurance Be Canceled?Canceling your FHA mortgage insurance depends on several factors, including the date you took out your loan and the size of your down payment. According to HUD’s rules:Loans Originated Before June 3, 2013: You may be able to remove the annual MIP when your loan-to-value (LTV) ratio reaches 78% (meaning you’ve paid your loan balance down to 78% of the original amount).Loans Originated On or After June 3, 2013: You typically must pay MIP for the life of the loan if your down payment is less than 10%. If you put down 10% or more, you may be able to remove MIP after 11 years.In some cases, borrowers may be eligible for an FHA mortgage insurance premium refund if they meet certain conditions.If you have an FHA loan, you might explore refinancing into a conventional mortgage once your credit score and equity improve. That can help you drop mortgage insurance costs altogether—especially if your home’s value in Colorado has risen, which is common in high-demand areas like Colorado Springs. Refinancing a current FHA loan to another FHA loan impacts UFMIP refunds and the continuing requirement to pay MIP based on certain conditions related to the down payment made when purchasing the home.Why FHA Loans Are Popular In Colorado SpringsColorado Springs real estate offers plenty of opportunities for both first-time homebuyers and current homeowners looking to upgrade. Yet, housing prices can be challenging for those who don’t have a large down payment or a near-perfect credit score. FHA loans help bridge that gap. Refinancing an FHA loan to a new FHA loan can help manage mortgage insurance premiums (MIP) and upfront premiums (UFMIP), and under certain conditions, mortgage insurance can be canceled. Understanding FHA mortgage insurance premium rates can help you better evaluate the overall cost of your loan.Here are a few reasons FHA loans remain a top choice in Colorado:Lower Down Payment Requirements: Borrowers can pay as little as 3.5% down.Flexible Credit Score Standards: You may qualify with a score that’s lower than what conventional loans require.Competitive Interest Rates: FHA-insured loans often feature interest rates that are comparable to some conventional loans.Tips For Reducing FHA Mortgage Insurance CostsMake a Larger Down Payment Putting down at least 10% can help you remove the annual MIP after 11 years instead of paying for the entire life of the loan. Borrowers who make a down payment of less than 20 percent on their home are required to pay mortgage insurance, which includes Mortgage Insurance Premiums (MIP) for FHA loans and Private Mortgage Insurance (PMI) for conventional loans.Improve Your Credit Score A higher credit score can help you secure better loan terms. Over time, you may qualify for a refinance, eliminating MIP once you switch to a conventional mortgage.Consider Shorter Loan Terms A 15-year FHA mortgage may have lower annual mortgage insurance rates. However, monthly payments can be higher.Keep An Eye On Your Home Equity Colorado Springs home values have trended upward. That could help you build equity faster, making it easier to refinance out of the FHA mortgage insurance requirement.Explore Refund Options Borrowers who refinance their FHA loans may be eligible for an FHA mortgage insurance premium refund, which can help reduce overall costs.FAQ: Common Questions About FHA Mortgage Insurance1. Does FHA Mortgage Insurance Apply To All FHA Loans?Yes. FHA mortgage insurance applies to all FHA loans, although the cost and duration can vary. Additionally, borrowers who refinance their FHA loans may be eligible for an FHA mortgage insurance premium refund.2. Is FHA MIP The Same As PMI?Not quite. Private Mortgage Insurance (PMI) typically applies to conventional loans. FHA MIP is similar in purpose but is managed by the Federal Housing Administration. Borrowers who refinance their FHA loans may also be eligible for an FHA mortgage insurance premium refund.3. Can I Cancel FHA MIP Early?Most borrowers cannot cancel MIP early unless they refinance into a conventional loan or meet certain down payment and timing requirements. Check your loan details or speak with a loan officer at 719 Lending for personalized guidance.In some cases, refinancing your FHA loan may also make you eligible for an FHA mortgage insurance premium refund.Ready To Explore Your Options?If you live in Colorado Springs or anywhere else in Colorado, 719 Lending is here to guide you through the FHA mortgage process. Our team of mortgage professionals will explain your options, help you understand your FHA mortgage insurance, and explore solutions—such as refinancing—to fit your goals. Our team can also help you explore options for an FHA mortgage insurance premium refund if you refinance your loan.For even more guidance, make sure to check out our Home Loan Options to see how we can support your journey toward homeownership or refinancing.Still have questions about FHA mortgage insurance or Colorado Springs real estate? Contact 719 Lending today and let our friendly, knowledgeable loan officers help you find your best path forward.Additional ResourcesConsumer Financial Protection Bureau – Offers general information on mortgages and consumer rights.HUD’s Official Guidelines For FHA Mortgage Insurance – Detailed rules on premiums.FHA Requirements For Mortgage Insurance – Explains mortgage insurance for FHA loans.FHA Mortgage Insurance Premium Refund – Information on eligibility and how to apply for a refund.FHA mortgage insurance can be a game-changer for anyone looking to secure a home in Colorado Springs with a lower down payment or less-than-perfect credit. By understanding these requirements, exploring cancellation options, and working with a trusted mortgage lender like 719 Lending, you’ll be well on your way to making confident, informed decisions about your Colorado home.The post FHA Mortgage Insurance Basics appeared first on 719 Lending.