Applying for a new home loan in Colorado Springs
When purchasing a home, applying for the loan is a very demanding event for many people, but it doesn't have to be.
Being close to several lenders in the Colorado Springs area has helped me recognize some things that will make the process of applying for a loan uncomplicated.
1 – Create a list of questions about your loan program
If you don't completely realize the ins and outs of all the various programs, be sure to bring a list of questions.
It's hard to understand the distinctions between both fixed and adjustable rate mortgages. I or one of my lender contacts can help you understand the advantages and disadvantages of each.
2 – Decide when to lock
When you lock in an interest rate, it indicates that a lender holds to the interest rates for the loan – ordinarily at the time the loan application is received.
By floating the rate, you can lock the rate at any time between application and the issuing of closing documents. Buyers who decide to float think that interest rates will dip in the near future. Click here to see the outlook for the next 90 days of interest rates.
3 – Decide if you want to pay additional points to decrease your rate
Oftentimes you can decide to pay additional points to lower the interest rate of your mortgage loan. Every point is 1 percent of the mortgage loan and is payable in cash at the time of closing.
To determine if you should purchase points, click here to use our points calculator.
4 – Gather your paperwork
Acquiring a loan requires lots of paperwork, so you should take some time to get your documentation together. Click here for a list of typical loan documentation.