Checklist for Applying for a Colorado Refinance Mortgage

Interest rates have dropped to near-historic lows in the last few months making now one of the best times to look into a Colorado refinance mortgage. When you refinance, you’ll get a new loan at a new interest rate and the lower that rate is, the more money you’ll save over the life of the loan. Refinancing is relatively simple, but you need to know what to expect before you start applying. We’ve put together a simple checklist that will make the process easy, fast, and stress-free.

Figure Out Why You’re Refinancing

Before you apply for a Colorado refinance mortgage, make sure you understand why you’re wanting to refinance in the first place. Are you looking to take advantage of a lower interest rate? Do you want to switch to a longer loan term to lower your payments? Knowing why will help you apply for the right type of refinance loan.

Look at the Numbers

Refinancing may not make sense for everyone. Take a look at your current mortgage payment and compare that amount against the quotes you receive from different lenders. You’ll also need to consider the closing costs for the loan and any prepayment penalties your original lender may assess. If refinancing will save you money, apply. If not, keep your current home mortgage.

Estimate Your Home’s Value

To apply for a home refinance loan, you’ll need to have an idea of what your home is currently worth. Ideally, your home will be worth more than you currently owe on your existing mortgage. If it is, you may be able to refinance the house for the full value, giving you extra money upfront to cover repairs or home improvements. Keep in mind that you can always refinance your mortgage just for the amount you owe, saving you money in the long-run.

Get Your Documents in Order

When you apply for a Colorado refinance mortgage, you’ll need to provide the same documents you used to get your original home loan. This means you’ll need to track down your W-2s, current pay stubs, statements of your current debts, and your credit report. Some lenders may require other documents as well. Check the requirements for each lender before you submit your application. This will help you stay organized and streamline the process.