Are you thinking about financing a new home in Colorado Springs?
For many people, applying for the mortgage loan can be one of the more demanding parts of buying a house, but it doesn't have to be.
I have a close business relationship with a lot of lending companies in Colorado Springs, and they've helped me learn some things that will make the loan application process a breeze.
1 – Make a list of questions regarding your loan program
If you find that you don't totally understand the advantages and disadvantages of all the various loan programs, be sure to bring a list of questions with you.
I or one of my trusted lenders will help you understand the advantages and disadvantages of each one, because it's a challenge to understand the characteristics of fixed and adjustable rate mortgages.
2 – Decide when to lock
By locking in the interest rate, your lender is holding to the mortgage interest rates for the loan – generally at the time the loan application is presented.
By floating the rate, you can lock the rate anytime between the loan application day and the issuing of closing documents. Those who choose to float presume 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 reduce your rate
Oftentimes you can opt to pay additional points to lower the rate of your loan. Every point is 1 percent of the mortgage loan and is payable in cash at the time of closing.
Click here to use our points calculator. This tool will assist you with deciding if buying points is the best option for you.
4 – Compile your paperwork
Obtaining a mortgage loan requires a lot of paperwork, so you should spend some time getting all your documentation together. Click here to get a list of normal loan documentation.