Are you financing a new home in Colorado Springs?
Applying for mortgage financing is one of the most exasperating aspects of purchasing a home, but it doesn't have to be.
I'm very familiar with several lending companies in Colorado Springs, and they've helped me realize some things that make the process of applying for a loan easy.
1 – Organize a list of questions regarding your loan program
If you find that you don't fully understand the ins and outs of all the various programs, be sure you bring a list of questions with you.
It is often a challenge to know the characteristics of fixed and adjustable rate mortgages. I or one of my trusted lenders will help you understand the advantages and disadvantages of each.
2 – Decide when you want to lock
By locking in a rate, the lender is holding to the mortgage interest rates for the loan – commonly at the time the loan application is received.
By floating the rate, you can lock the rate anytime between the day of your loan application and the issuing of closing documents. Those who decide to float presume that interest rates will drop in the near future. Click here to see the outlook for the next 90 days of interest rates.
3 – Determine if you want to pay additional points to decrease your rate
When you choose to pay additional points to lower the interest rate of your mortgage loan, you will pay for them in cash at closing. Each point is 1 percent of the mortgage loan.
If you're unsure as to whether or not purchasing points is the best option for you, click here to use our points calculator.
4 – Compile your paperwork
Acquiring a mortgage loan requires lots of paperwork, so you should take some time to get all your documentation together. Click here to get a list of common loan documentation.