Question 1

What does a mortgage broker do that a bank does not?

Accepted Answer

A broker shops your file across many wholesale lenders instead of selling one menu of loans. The Binger Team works with 70+ wholesale mortgage banks through the IMB network. We send your scenario out, compare the pricing that comes back, and place the loan where it fits best. A bank can only offer what the bank owns. Polygon Research found borrowers using an independent broker saved an average of $10,662 over the life of the loan compared with nonbank retail lenders, based on 2023 HMDA data. Those are market averages, not a quote.

Question 2

Which states can The Binger Team lend in?

Accepted Answer

We are licensed in Arizona, Colorado, Florida, Illinois, Iowa, Michigan, Tennessee, Texas, Wyoming. Ben Binger, Sr. Mortgage Advisor at Alloy Mortgage, NMLS #1322594. Our office is at 6825 E. Tennessee Ave, Ste 415, Denver, CO 80224. Call or text 720-386-4071, or email Ben@BingerTeam.com, to talk through your scenario.

Question 3

Does it cost me more to use a broker instead of going to my bank?

Accepted Answer

Usually the opposite. Wholesale pricing through a broker tends to come in better than retail bank pricing. Wholesale lenders do not carry branch networks and big ad budgets, so their rate sheets are built to win business from brokers on price. We are paid by the lender after closing, and our compensation is disclosed on your loan estimate so you can see exactly what we make. You can also check our license at the Colorado Division of Real Estate anytime.

Question 4

Will you still help me if my loan is small or my credit is not perfect?

Accepted Answer

Yes. A loan is a loan to us, and we work the same way on a $180,000 condo as a $900,000 house. There is no minimum deal size for good service here. If your credit needs work, we would rather tell you what to fix and check back in a few months than force a bad option today. A lot of our closings are people we first talked to six months earlier.

Question 5

How do I know I am getting honest advice and not just a sales pitch?

Accepted Answer

You see the comparisons. We put competing options side by side on paper before you decide. When we quote you, we show the rate, the fees, and the math on at least two structures, and we tell you when we think the cheaper long term option is not the one that costs less today. We also answer to state and federal regulators, and our license record is public. Education first is how we have kept a five star reputation for years.

Question 6

Who do I actually talk to during the process?

Accepted Answer

Us, directly. You get a small team that knows your file, not a call center queue. From the first conversation through closing day, you have direct phone, text, and email access to the people working your loan. When something changes, you hear it from us the same day, with a plain explanation of what it means and what happens next.

Question 7

How much money do I need for a down payment in Colorado?

Accepted Answer

Conventional loans start at 3% down, FHA at 3.5%, and VA and USDA can be zero down. First time buyers often qualify for the lowest conventional option. Colorado also has down payment assistance programs that pair with these loans. The right answer depends on your credit, the property, and how long you plan to stay, so we usually price two or three options side by side.

Question 8

What credit score do I need to buy a home?

Accepted Answer

FHA can work near 580, conventional usually starts around 620. Score affects the rate and the mortgage insurance, not just approval. If you are close to a better tier, we will show you what a small change in balances could do before you apply. There is no charge for that conversation.

Question 9

Should I get pre-qualified or pre-approved?

Accepted Answer

Get pre-approved. Colorado sellers take verified buyers more seriously. Pre-qualification is a quick estimate. Pre-approval means we reviewed income, assets, and credit, so your offer carries weight. Our five question form starts the process and we follow up the same day.

Question 10

How much house can I actually afford?

Accepted Answer

What you qualify for and what fits your budget are two different numbers. We help with both. Lenders approve a payment based on your debt to income ratio, but that number does not know about your grocery bill, your car plans, or the trip you want to take next year. We run the approval number, then help you pick a payment you will still like in year three, and shop homes to that number instead of the maximum.

Question 11

Can I buy a home if I have student loans?

Accepted Answer

Yes. Most of our first time buyers carry student debt, and there are ways to structure around it. What matters is how your loan servicer reports the monthly payment. Income driven repayment plans, deferment, and standard plans are each counted differently depending on the loan program. FHA, conventional, and VA all treat student loans differently too, which is one reason having a broker compare options pays off here.

Question 12

What is down payment assistance and do I qualify?

Accepted Answer

Colorado has real programs that cover part or all of your down payment. Many buyers earning solid incomes qualify. Programs like CHFA and Metro DPA offer grants or low cost second loans for down payment and closing costs, and income limits are higher than most people expect. You will usually need a homebuyer education class, which is free and online. We check your eligibility for every program you might fit before you spend your own savings.

Question 13

What are closing costs and who pays them?

Accepted Answer

Expect roughly 2% to 4% of the price in lender, title, and prepaid costs on a Colorado purchase. Prepaid taxes and insurance are the largest piece for many buyers, and that money funds your escrow account rather than paying a fee. Sellers can often contribute toward closing costs, and lender credits can cover part of them in exchange for a slightly higher rate.

Question 14

Can the seller pay my closing costs?

Accepted Answer

Often, yes. Seller concessions are common in Colorado, and we negotiate them into your offer strategy. Depending on the loan program, sellers can contribute between 3% and 6% of the price toward your costs. In a balanced or slower market this is a normal ask. We will tell you what is realistic for the neighborhood you are shopping in before your agent writes the offer.

Question 15

What is the difference between paying points and taking a lender credit?

Accepted Answer

Points are cash now for a better rate later. A lender credit is a slightly higher rate now for less cash at closing. Paying one point (1% of the loan amount) typically buys the rate down about 0.25%, so it pays off if you will keep the loan long enough. A lender credit works in reverse and is useful when cash is tight. We show you the break even month on both so the choice is math, not a guess.

Question 16

Why does my cash to close include several months of taxes and insurance?

Accepted Answer

That money seeds your escrow account so the lender can pay your tax and insurance bills on time. It is your money, not a fee. Colorado property taxes are paid in arrears, so at closing you prepay a few months into escrow plus your first year of homeowners insurance. This surprises a lot of buyers, so we give you an accurate cash to close estimate early, not the week of closing.

Question 17

Are there any fees I should push back on?

Accepted Answer

Yes. Junk fees exist, and part of our job is keeping them off your loan estimate. Watch for things like processing fees, admin fees, and application fees stacked on top of normal underwriting. Because we work with wholesale lenders, we see clean rate sheets, and we go line by line with you before you commit to anything. If a fee does not buy you something, we say so.

Question 18

How long does it take to close a home loan?

Accepted Answer

Most purchase loans close in 18 to 25 days once you are under contract. Pre-approval usually takes a day or two after you send income and asset documents. From there the appraisal and underwriting drive the calendar. We protect the contract dates and tell you what is happening at every step.

Question 19

When should I lock my interest rate?

Accepted Answer

Most borrowers lock once they are under contract and the file is in underwriting. Locks run 15 to 60 days. Longer locks cost a little more. If rates fall meaningfully after you lock, some lenders allow a one time float down, and we will tell you when that is worth using.

Question 20

What documents will I need to provide?

Accepted Answer

Pay stubs, W-2s, bank statements, and an ID cover most files. Self employed buyers add tax returns. For most buyers we need 30 days of pay stubs, two years of W-2s, two months of bank statements, and a photo ID. Self employed borrowers add two years of personal and business returns. We give you a specific list up front so there is no document chase mid-contract.

Question 21

What happens between going under contract and closing day?

Accepted Answer

Appraisal, underwriting, final approval, then signing. Most of the heavy lifting is ours, not yours. Once you are under contract we order the appraisal, submit your file to underwriting, and clear any conditions that come back. You will sign disclosures electronically and wire your cash to close a day or two before signing. We send updates at every milestone so you always know the next step.

Question 22

Can anything hurt my approval after I am pre-approved?

Accepted Answer

Yes: new debt, big purchases, job changes, and moving money around without a paper trail. Until you close, hold off on financing furniture or a car, opening new credit cards, changing jobs, or making large undocumented deposits. Lenders re-verify credit and employment right before closing. If life happens anyway, call or text us first and we will tell you how to handle it.

Question 23

What if the appraisal comes in below the purchase price?

Accepted Answer

You have options: renegotiate, bring the difference, challenge the appraisal, or walk away with your earnest money if the contract allows. A low appraisal is not the end of the deal. We review the report for errors, your agent can negotiate a price reduction, and sometimes a second appraisal or a reconsideration of value makes sense. We have navigated plenty of these and will lay out the real choices the same day the report lands.

Question 24

Do veterans really get a zero down loan?

Accepted Answer

Yes. VA loans allow 100% financing with no monthly mortgage insurance. There is a one time funding fee that is often financed, and it is waived for veterans with a service connected disability rating. Our VA hub calculates the fee, compares zero down against 20% down, and walks through getting your Certificate of Eligibility.

Question 25

How many times can I use my VA loan benefit?

Accepted Answer

As many times as you want. The benefit is reusable for life, and you can even hold two VA loans at once in some cases. Once you sell and pay off a VA loan, your full entitlement is restored. You can also have entitlement partially tied up in one home and still buy again with what remains, which comes up often for military families moving from Fort Carson or Peterson to their next duty station.

Question 26

What is the VA funding fee and can I avoid it?

Accepted Answer

It is a one time fee that keeps the program running, and it is waived entirely with a service connected disability rating. For first time use with zero down the fee is 2.15% of the loan amount, and it drops with 5% or 10% down. Most buyers finance it into the loan. If you receive VA disability compensation, or qualify for it, you pay nothing. We confirm your exemption status before quoting.

Question 27

Can I use my VA loan more than once in Colorado?

Accepted Answer

Yes, and Colorado has no VA loan limit when you have full entitlement, even on higher priced homes. With full entitlement you can buy above the conforming limit with zero down. With partial entitlement the county limit factors in. Colorado Springs, Denver, and the suburbs all see regular VA purchases at many price points, and we work with VA friendly appraisers and agents across the Front Range.

Question 28

What is an IRRRL, or VA streamline refinance?

Accepted Answer

It is the VA's simplified refinance: less paperwork, often no appraisal, built to move you into a better rate quickly. If you already have a VA loan and rates have improved, the IRRRL usually needs no income verification and no appraisal. There is a reduced 0.5% funding fee. We watch rates for our VA clients and reach out when a streamline makes clear financial sense, not before.

Colorado mortgage questions, answered plainly

Why Work With A Mortgage Broker

First-Time Buyer Questions

Closing Costs

The Loan Process

VA Loan Questions