7 Secrets from Colorado Springs’ Top Mortgage Companies
So, you’ve finally made the decision to stop renting and buy a house you can grow into. Congratulations! It’s a big step! Before you start looking for a house, you’ll want to start shopping for mortgages. If you’ve never applied for a home loan before, it’s normal to feel a bit confused and overwhelmed when you first start shopping with local Colorado Springs mortgage companies. There are a few secrets those mortgage companies want you to know before you start comparing options.
1. You don’t need stellar credit to get a loan.
Almost all Colorado springs mortgage companies will use your credit score to determine whether or not you qualify for a loan. But that doesn’t mean you have to have great credit to qualify. In fact, many lenders will qualify you for a loan even if your credit needs work. It all depends on your unique financial situation. So, go ahead and apply!
2. Always shop around.
Every Colorado Springs mortgage company wants you to choose them when you finance your house. But every company will offer you different rates and terms. Use this to your advantage and shop around. Get quotes from different companies and go with the loan that offers you the best rate and highest loan amount.
3. Look into first-time homebuyers’ programs.
Most first-time buyers will qualify for some down payment assistance. Start looking at programs before you get your first loan quote. Lenders can always work with these programs and won’t think less of you for using them.
4. There’s no such thing as a no-cost loan.
Even in the mortgage industry, there are some lenders that aren’t reputable. These lenders advertise no-cost loans meaning you won’t pay an origination fee. Your Colorado Springs mortgage companies want you to beware these lenders. You’ll end up paying those costs in the form of higher interest rates over the life of your loan.
5. Close the loan at the end of the month.
You get to choose when you close on the loan and get to pick the day yourself, even if your lender doesn’t tell you that. Whenever possible, close at the end of the month. This can end up saving you money on the interest you’ll pay for your first month’s mortgage payment.
6. You can ask for rate locks when shopping for loans.
Interest rates fluctuate all the time. This means the amount you’re quoted may change by the time you actually apply for and accept the loan. Always ask for a rate lock when getting quotes and get that rate in writing. This way, your quote will be accurate even if the market changes.
7. Think local.
The internet makes it easy to shop for mortgages with lenders all over the country. This doesn’t mean you’re getting the best rate. In fact, many Colorado Springs mortgage companies can meet or beat the rates national lenders offer. Shop online, by all means, but make sure to check with local lenders.
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