Getting a mortgage
While there is inventory and a lot of showings of solid, mid-priced homes, and offers are made for the homes available, getting a mortgage is often the fly in the ointment in buying for those mid-priced home buyers.
How could this be?
Denver has become a great place to relocate to because there are plenty of jobs, good paying jobs. The problem with that is prices rose quickly and priced many right out of the market, whether buying or renting. Prices have leveled off, but the amount that has to be spent to purchase a home is still a large part of most people’s income.
Why is that a problem?
Because most mortgage companies have rigid requirements regarding income to debt ratios and appraisal values. If more than about 20% of your income is your mortgage, they probably won’t give you a mortgage. There is also issues with appraised values versus asking prices. If there is too much of a difference and the buyer can’t make that up with more down money, that contract will go away.
The good news is that the troubles will mean that the price craziness of the last few years will level off. If those buyers can take this time to save more down money it will can help them get that mortgage soon.