Thinking of financing a new home in Colorado Springs? Brian L. A. Wess can help.
When buying a home, applying for financing is a exasperating event for many people, but it doesn't have to be.
Having connections with several mortgage lenders in the Colorado Springs area has helped me recognize a few things that can make the process of applying for a loan a snap.
1 – Make a list of questions about your loan program
Be sure to bring a list of questions with you if you do not entirely understand the pros and cons of all the various programs.
It can be hard to understand the distinctions between both fixed and adjustable rate mortgages. I or one of my lenders will be able to help you understand the advantages and disadvantages of each program.
2 – Determine when you want to lock
When you lock in the rate, your mortgage lender is sure to hold to the interest rates for the loan – normally at the time the loan application is submitted.
By floating the rate, you can lock the rate anytime between the day you apply for the loan and closing. Buyers who prefer to float presume that interest rates will decline 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 lower your rate
If you choose to pay additional points to lower the rate of your mortgage loan, you'll do so by paying for them in cash at the time of closing. Every point is 1 percent of the mortgage loan.
Click here to use our points calculator. It will help you determine if buying points is right for you.
4 – Gather your paperwork
Obtaining a loan requires lots of paperwork, so you should take some time to get all your documents together. Click here for a list of common loan documentation.