Homebuyers in Colorado Springs have several loan options to choose from. Conventional loans are the most common, FHA loans are designed for first time buyers with lower down payments, and VA loans are available to veterans and active military with no down payment required. A local lender can help determine which mortgage program is the best fit for you.
A common guideline is to keep your monthly mortgage payment at or below 28% of your gross monthly income. Lenders also look at your total debt to income ratio, which includes car payments, student loans, and credit cards. When buying a home in Colorado Springs, knowing your budget upfront helps you focus on homes you can comfortably afford.
Credit score requirements for a mortgage vary by loan type. Conventional loans typically require a 620 or higher. FHA loans may accept scores as low as 580 with a 3.5% down payment. VA loans don't have a set minimum, but most lenders look for at least 620. A higher credit score usually means better mortgage rates and lower monthly payments on your Colorado Springs home.
Getting pre-approved is the first step because it sets your budget and shows sellers you're serious. After that, you'll search for homes, make an offer, and negotiate. Once under contract, expect inspections, appraisal, and final loan approval before closing. In Colorado Springs, this process typically takes 30 to 45 days. The Johnson Team can help you navigate each step smoothly from start to finish.
Homebuyers in Colorado Springs should budget 2% to 5% of the purchase price for closing costs. This covers lender fees, title insurance, appraisal, home inspection, and prepaid items like property taxes and homeowners insurance. Your lender will provide a detailed estimate once you're under contract.
Mortgage pre-approval means a lender has reviewed your finances and confirmed how much you can borrow. It's different from pre-qualification, which is just an estimate. In a competitive Colorado Springs housing market, a pre-approval letter shows sellers you're a serious buyer and can strengthen your offer. The Johnson Team can connect you with trusted local lenders to get started.
The Johnson Team is a large team that focuses on a small area. Hyper-Local Matters. We are one of the top real estate teams in the state of Colorado because our marketing techniques and drive surpass the competition. Even more than that, it’s because we know our market and we know our neighborhoods. Rather than extending our reach, we go Hyper-Local.