Denver Lofts and Condos

Are you in the market for a loft or condo in Denver but don't know where to start? Reading this post is a great first step! There are a number of things one must do prior to the big purchase. The first step is to have an understanding of what your financial situation is, what you can put down, and how much you can afford monthly. It is generally understood that you should never spend more than 1/3 of your monthly gross income toward your mortgage (this 1/3 should also contain monies for your HOA if you have one, which most Denver lofts and Denver condos have).

Once you know what you can afford, the next step is to decide where you want to live. Do you prefer urban or suburban living? If you prefer suburban living, you're in luck. There are seven counties just outside of Denver county that offer sprawling space with gorgeous front range views, and typically living in the suburbs is still a convenient 45 minute drive to the heart of Denver.  If suburban living is not your pace and you prefer to live in urban Denver, you'll have the convenience of great restaurants, bars, amusement parks, Rockies baseball games, Bronco football games, Nuggets basketball games, great skyline views, and pedestrian-friendly paths. Living in Denver's dense urban area will allow you to literally go weeks without needed a car.

Step three is to figure out which form of financing works best for you. Pre-approval is the best way to go.  Do you want a 30 year fixed loan? Or are you more interested in a five year interest only arm? With the recent economic mortgage problems, Fannie and Freddie may not be your most friendly option.

Fannie Mae and Freddie Mac, government-controlled mortgage companies, have their place. As of March 2009, however, they tightened their restrictions on mortgages for condos (new or newly constructed). At present, they will only consider mortgages if 70% of the units have sold or are under contract. FHA loans may be an option for those that require a lower down payment, where the down payment can be as low as 3.5% of the purchase price of the condo. If there is a FHA seal of approval the mortgage process will move forward much more quickly. If you want to check to see if a building is FHA approved, you can do so by checking the government's HUD database at:  https://entp.hud.gov/idapp/html/condlook.cfm  or simply contact your loft and condo experts at New Era Realty (agents@mynewera.com) to speak directly to a recommended lender to determine your qualification.

Step four, you must know your Condo or Loft's home owners' association. With the current economic situation many people are falling behind on association dues. Delinquencies are then handed over to other condo owners, and if more than 15% of the condo association dues are 30 days late, Fannie Mae won't purchase any mortgages within the complex. 

Take the time to answer these questions and you will ultimately feel more satisfied with your purchase and you will enjoy living in your new Denver Loft or Condo for a longer period of time.