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Mortgage Questions? Straight Answers from a Top 1% Colorado Loan Officer

No jargon. No sales pitch. Just honest answers to the questions Colorado home buyers and homeowners ask most.

Mortgages are complicated by design. The more confused you are, the less likely you are to shop around. Todd Gehrke has spent 20+ years doing the opposite — explaining how things actually work so his clients make better decisions. If your question is not here, call him. He picks up.

1

The Mortgage Process

The standard process: (1) Pre-approval — Todd pulls credit, verifies income and assets, and issues a pre-approval letter; (2) Home search and offer — your agent finds a home, you make an offer; (3) Application and underwriting — once under contract, Todd submits the full file to underwriting; (4) Appraisal — lender orders an appraisal to confirm property value; (5) Clear to close — underwriting approves the file; (6) Closing — you sign final documents and get the keys. Total timeline from application to close: 20–30 days.
Pre-qualification is a rough estimate based on information you provide — no credit check, no verified documentation. It carries little weight in an offer situation. Pre-approval involves a hard credit pull and review of actual income and asset documentation. It is the standard in the Denver market and tells sellers you are a serious, verified buyer.
Standard requirements: two years of tax returns (personal and business if self-employed), two months of bank statements, W-2s for the past two years, most recent pay stubs, photo ID, and any relevant asset account statements. Todd will give you a complete checklist when you start your application.
A standard purchase closes in 20–30 days from a complete application. Refinances typically follow a similar timeline. Streamline programs (FHA Streamline, VA IRRRL) can be faster. Todd will give you an honest timeline at the start of your application.

2

Rates and Costs

Rates change daily based on economic conditions. As of mid-2026, 30-year fixed rates in Colorado are running approximately 6.25–7.0% for primary residences with strong credit and conventional loans. The exact rate you qualify for depends on your credit score, down payment, loan type, and loan-to-value ratio. Todd will give you a precise quote based on your actual profile.
APR (Annual Percentage Rate) includes your interest rate plus lender fees — origination fees, points, and other costs — expressed as a single annual percentage. Two loans can have the same rate but very different APRs depending on the fees. Always compare APR when evaluating lenders. Todd will show you APR for every option.
A point equals 1% of the loan amount paid upfront to lower your interest rate — typically by 0.125–0.25% per point. Whether it makes sense to pay points depends on how long you plan to keep the loan. Todd calculates the break-even on points for every client before recommending them.
PMI (Private Mortgage Insurance) is required on conventional loans when your down payment is less than 20%. It protects the lender, not you. It can be removed once your loan-to-value ratio reaches 80% through payments, appreciation, or a combination. FHA loans carry mortgage insurance premium (MIP) for the life of the loan in most cases — which is one reason refinancing from FHA to conventional can make sense once you have built equity.
Closing costs typically run 2–3% of the loan amount and include origination fees, appraisal, title insurance, prepaid taxes and insurance, and government recording fees. Todd will give you a Loan Estimate with itemized costs early in the process so there are no surprises at the closing table.

3

Qualifying for a Mortgage

FHA: 580 minimum (3.5% down) or 500 (10% down). Conventional: typically 620 minimum, best rates at 740+. VA: no official minimum, but most lenders prefer 620+. USDA: typically 640+. Todd will pull your credit and tell you exactly where you stand and which programs you qualify for.
Lenders look at your debt-to-income ratio (DTI) — your total monthly debt payments divided by your gross monthly income. Most programs allow a DTI of 43–50%. Your credit score, loan type, and down payment also affect the maximum loan amount. Todd will calculate your maximum purchase price based on your actual numbers.
Yes. Self-employed borrowers typically need two years of tax returns showing consistent or growing income. Lenders use your net income after deductions, which is sometimes lower than your actual income — a common challenge. Todd works with self-employed buyers regularly and knows which loan programs are most accommodating.
Your DTI is your total monthly debt payments (mortgage, car, student loans, credit cards) divided by your gross monthly income. Most conventional programs allow up to 45–50% DTI. FHA can go higher in some cases. The lower your DTI, the better your rate and the more loan programs you qualify for.

Have a specific situation?

Browse Todd’s service pages for detailed answers on home purchase, refinancing, investment properties, and first-time buyers — or just call him at (720) 608-0013.

Still Have Questions?

Book a free 45-minute call with Todd. You bring the questions — he brings the math.

Book a Free 45-Minute Call
(720) 608-0013

YesTodd

“It’s not magic. It’s just math.”

  • 6020 Greenwood Plaza Blvd, Suite 110
  • Greenwood Village, CO 80111

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  • NMLS #248559
  • Licensed in Colorado

▮ Equal Housing Lender

Todd Gehrke | NMLS #248559 | Licensed Mortgage Broker in Colorado. Equal Housing Lender. All rates are subject to change and are not guaranteed. This is not a commitment to lend. Edge Home Finance, LLC © 2026. All Rights Reserved. (952) 688-6066 NMLS #222755 Company NMLS #891464 Licensed In: CA, CO, FL, MI, MN, NC, ND, OH, TX, VA, WA & WI www.nmlsconsumeraccess.org

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