Frequently Asked Questions

Pre-qualification is an informal estimate based on information you self-report — income, assets, debts — and gives you a rough sense of what you might qualify for. Pre-approval goes further: a lender pulls your credit, verifies your documents, and issues a conditional commitment in writing. In Colorado's competitive market, sellers take pre-approval seriously; pre-qualification alone often isn't enough to compete.

It depends on the loan type. Conventional loans can go as low as 3%, FHA loans require 3.5% with qualifying credit, and VA loans may require no down payment at all for eligible veterans. Colorado also has down payment assistance programs that can help cover part or all of your upfront costs — eligibility varies by income, location, and loan type, and we'll walk you through what you may qualify for.

Minimums vary by loan type: FHA loans typically allow scores starting at 580 with a 3.5% down payment, while conventional loans generally require 620 or higher for the best terms. A higher score almost always means a better rate. If your score needs work, we'll tell you honestly what it will take to improve it rather than steering you toward a loan that doesn't serve your long-term interests.

A VA loan is a mortgage benefit available to eligible veterans, active-duty service members, and surviving spouses — backed by the U.S. Department of Veterans Affairs. It typically requires no down payment and no private mortgage insurance, which can mean significant savings. Eligibility is based on service length and discharge status; we can help you request your Certificate of Eligibility and determine whether a VA loan is your best path.

Colorado has several programs designed to lower the barrier to homeownership, including options through the Colorado Housing and Finance Authority (CHFA) that offer down payment and closing-cost assistance. Income limits, purchase price caps, and location requirements apply, and eligibility is specific to each household's situation. These programs can be genuinely helpful — we'll identify which ones you qualify for and explain exactly how they work before we recommend anything.

FHA loans are often easier to qualify for and allow lower credit scores and smaller down payments, but they require mortgage insurance for the life of the loan in many cases. Conventional loans have stricter credit and down payment requirements but offer more flexibility once you've built equity — and mortgage insurance can be removed once you reach 20% equity. The right choice depends on your credit profile, down payment, and how long you plan to stay in the home. We'll model both scenarios for you.

Your rate is shaped by several factors: your credit score, loan-to-value ratio, loan type, loan term, property type, and current market conditions. No two borrowers receive the same rate, which is why published averages are only loosely useful. As a mortgage broker, we have access to multiple lenders and can shop your file to find competitive pricing — rather than offering you a single institution's rate and calling it done.

Private mortgage insurance (PMI) protects the lender — not you — if you default, and is typically required on conventional loans when your down payment is less than 20%. It adds to your monthly payment until you reach 20% equity in your home, at which point you can request removal. You can avoid PMI upfront by putting 20% down, using a VA loan (which has no PMI), or structuring a piggyback loan in some situations. We'll explain the trade-offs clearly.

Refinancing can make sense when market rates have fallen meaningfully below your current rate, when you want to switch from an adjustable to a fixed rate for stability, or when you need to access equity for a specific purpose. The key is the break-even calculation: divide your closing costs by the monthly savings to find how long it takes to recoup the cost. If you plan to stay in the home past that break-even point, it's usually worth exploring.

Most borrowers need recent pay stubs, two years of W-2s and federal tax returns, two to three months of bank and asset statements, a government-issued ID, and rental payment history if applicable. Self-employed borrowers typically need additional documentation, including profit-and-loss statements. We'll give you a precise checklist once we understand your situation — no vague "gather your documents" advice here.

From application to closing, most purchases take 30 to 45 days when documentation comes in promptly and no unexpected issues arise. The timeline can vary depending on the complexity of your file, the lender's workload, and the property itself (appraisal, title work). We'll set realistic expectations at the outset and keep you updated throughout — no surprises at the closing table is a standard we take seriously.

A bank can only offer you their own loan products; a mortgage broker has access to dozens of lenders and can shop your loan to find the terms that fit your specific situation. We're not locked into a single rate sheet, and our compensation doesn't depend on steering you toward any particular product. As a broker, Arete's job is to match you with the right lender — not to sell you loans you don't need.