Best Mortgage Companies in Colorado

Are you buying a home in Colorado? We’ve put together a handy guide to walk you through the different mortgage types available to you and what to look for in a mortgage lender. Read on to discover the best mortgage companies for your situation.

Best Mortgage Companies in Colorado

There are many mortgage lenders to choose from in Colorado. Here are some of our top choices.

1. Angel Oak Mortgage Solutions

Angel Oak Mortgage Solutions is a full-service mortgage lender offering traditional and portfolio mortgage loans, depending on your needs. Among their customized loan solutions is a Bank Statement product for self-employed borrowers, along with traditional loan products. Bank Statements loans do not require tax returns and include a 1099 Income option for 1099 earners. 

• Loan amounts up to $3 million
• 12 or 24 months personal or business bank statements
• Two years out of bankruptcy, short sale, foreclosure, or deed-in-lieu
• Owner occupied, non-owner occupied, second homes
• 1099 option available
• 40-year fixed interest only
• Delayed financing available
• Non-warrantable condos allowed

Angel Oak Mortgage Solutions offers a wide array of loan options allowing you to obtain any mortgage as long as qualification requirements are met. You can also refinance in the future, if you like. The customer service team is easy to reach via email, phone or the online contact form, and you can begin your journey by searching for a local advisor on the website.

Angel Oak is headquartered in Atlanta, Georgia and is licensed in AL, AZ #0927070, licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, CO, CT, DE, DC, FL, GA #32379, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, NV, NH, licensed by the N.J. Department of Banking and Insurance, NM, NC, OH, OK, OR, PA, Rhode Island Licensed Lender, SC, TN, TX, UT, VT, VA, WA dba AOHL LLC, WI.

Rocket Mortgage® offers an online mortgage process. This can make getting a mortgage less stressful for many borrowers who seek a quick, intuitive process.

Rocket Mortgage® even offers a mobile app to help you stay connected and get assistance even when you’re on the go. If you use Rocket Mortgage®, you can expect to receive customized mortgage solutions and responsive customer service.

With Rocket Mortgage you need a minimum credit score of 580.

You can expect to close within 30 days on average.

3. CrossCountry Mortgage

CrossCountry Mortgage makes it easy for all types of homebuyers to get approved for a mortgage. Their flexible requirements can help you get financing, with no employment or income verification and no minimum DTI. CrossCountry Mortgage offers traditional loan terms, as well as more flexible home payment plans with their 40-year loan program.

It’s also easier to get approved if you’re self-employed. Tax returns are not required and you’ll only need one year of self-employment income history and a minimum credit score of 580. CrossCountry Mortgage can also help you get approved on assets alone, like your bank statements, stocks and bonds, or retirement accounts.

Mortgages Explained

Before you begin looking at mortgages, it’s important to understand the different mortgage types and terms that are available. Mortgage types refer to the loan program you enroll in. This can include mortgages offered directly from lenders or those backed by the federal government. Your mortgage term is the length of time it’ll take to repay your loan. Here’s a quick overview of some of the most common mortgage types:

• Conventional: Conventional mortgages are the most accessible mortgage type for most buyers. These mortgages have fewer eligibility requirements because they are not backed by the federal government. Conventional mortgages can come in a wide range of repayment terms. 
• FHA: FHA mortgages are part of a mortgage program managed by the Federal Housing Administration. This mortgage type offers down payments as low as 3.5%. Most lenders will accept a credit score of 580 or above for FHA mortgages. If you have a lower credit score, you may be eligible as long as you make a down payment of 10% or more.
• VA: VA mortgages are backed by the U.S. Department of Veterans Affairs. These mortgages are available to eligible military members and in some cases, the spouses of military members. VA mortgages offer low rates and no minimum down payments. 
• 30-year fixed: A 30-year fixed mortgage term means you will make the same monthly mortgage payment for 30 years. Your interest rate will be set at the start of your mortgage and will not change throughout the lifetime of your loan. 
• 15-year fixed: A 15-year fixed mortgage term allows you to make the same monthly mortgage payment for 15 years. Like the 30-year fixed mortgage, your interest rate will be set at the start of your mortgage. You can expect higher monthly mortgage payments with a 15-year fixed mortgage because you repay the loan over a shorter period of time. This also means you will pay less interest over the lifetime of your loan. 
• 5/1 ARM: A 5/1 adjustable-rate mortgage (ARM) is a hybrid loan type. A 5/1 ARM mortgage means you’ll pay a fixed interest rate for the first 5 years of your mortgage. After that, your mortgage rate will change once per year. 

Which Mortgage Lender is Best for You?

Each lender has its own pros and cons, and not every lender is a good fit for you. Here are some of the things to consider when you select your mortgage lender:

• Mortgage types: One of the first things to look for is the mortgage type the lender offers. Identify a few mortgage types and terms that you are interested in and seek out lenders who offer them. Some lenders specialize in certain mortgage types, such as VA loans. Make sure your lender is a qualified lender if you’re considering a government-backed loan or specialized loan program and heck the lender’s experience with that loan type.
• Customer service: You will rely on your lender to guide you through the mortgage process, so it’s important that you feel comfortable with the service the lender offers. Don’t be afraid to ask questions when you’re shopping around for lenders. Your lender should be happy to answer your questions and get back to you in a timely manner. 
• Resources: Most lenders offer online resources to help answer common questions about the mortgage process. Will you be able to enroll in automatic payments? Does the lender have a location where you can speak to someone in person? Decide what type of resources you want from your lender and make sure the lender can offer what you need.

Lender Credit Score Minimums in Colorado

Lenders take a close look at your credit score when you process your mortgage application. This information can help a lender understand your financial background and whether you’re a reliable borrower.

Your credit score is based on a number of factors, including whether you make payments on time and how much credit you have available. Each lender sets a minimum credit score requirement to receive approval on a loan. If your credit score is higher than the minimum requirement, lenders may offer you a lower mortgage rate.

Current Mortgage Rates in Colorado

Mortgage rates aren’t solely based on your credit score. Most lenders sell your mortgage to a 3rd-party investor. Mortgages are then packaged together into a mortgage-backed security. These securities are traded, much like stocks on the stock market. The going rate on these securities will affect current mortgage rates. Other factors such as inflation also affect mortgage rates. 

Mortgage rates often fluctuate — Benzinga is committed to monitoring these fluctuations and updates this chart regularly to reflect the most recent data.

Average Days to Close on a Loan

When you place an offer on a home, you’re only at the beginning of the end. If the seller accepts your offer, you will move into what is known as the closing process. During this time, you will schedule necessary procedures such as home inspections and appraisals. Professional inspectors and appraisers will come to the home you are purchasing to evaluate it.

They will determine any areas of the home that may need repairs or updates and the estimated value of your home. Using this information, you can negotiate the terms of the sale with the seller. For example, you may want to request that the seller replaces a water heater before you close on the home. 

You will then finalize the loan with your lender. During this time, you will want to stay in close contact with the lender to help the process move. You will make your down payment and any other necessary payments during this time. 

Finally, set a closing date on your home. Perform a final walkthrough to confirm that the home is in the condition you and the seller agreed on. After your closing documentation is signed and the house title is transferred, you will be able to move into your new home.

What Happens Next?

We’ve gone over the best mortgage companies in Colorado, mortgages types and terms and what lenders are looking for. Next, go ahead and get a purchase quote. 

When you’re ready, you can start reaching out to lenders to see what mortgage types and rates you qualify for. Before you start your mortgage application, you’ll want to make sure you have some of the necessary documents ready. Most lenders will require the following documents with your application:

• W-2 forms from the past 2 years
• Tax returns from the past 2 years
• Recent pay stubs from your job(s)
• Bank statements, including checking, savings and retirement accounts
• Any court orders that require you to pay or receive additional income

Consider reaching out to a mortgage broker if you want more assistance finding the right mortgage type and lender for you. Mortgage brokers will help you find the best rates available for your mortgage type and can also help answer any questions you have about the mortgage process.

No matter which route you decide to take, we wish you the best of luck in your search for a new home!