Do you wish to finance a home in Colorado Springs?
Applying for a loan can be one of the most demanding elements of purchasing a house for a buyer, but it doesn't have to be.
I'm very close to several lenders in the Colorado Springs area, and they've helped me learn some things that make the process of applying for a loan pretty simple.
1 – Make a list of questions regarding your loan program
If you do not totally comprehend the advantages and disadvantages of all the various loan programs, be sure to have a list of questions with you.
It's hard to understand the differences between both fixed and adjustable rate mortgages. I or one of my lender contacts can help you understand the advantages and disadvantages of both programs.
2 – Decide when you want to lock
By locking in an interest rate, your lender is guaranteeing the interest rates for the loan – generally at the time the loan application is received.
By floating the rate, you can lock the rate anytime between the loan application day and issuance of closing documents. Buyers who elect to float believe interest rates will plunge 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 reduce your interest rate
If you elect 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.
To decide if buying points is the best option for you, click here to use our points calculator.
4 – Gather your paperwork
Acquiring a mortgage loan requires a lot of paperwork, so you should spend some time getting all your documentation together. Click here for a list of typical loan documentation.