Filling out a mortgage application is the first step to buying your dream home in Colorado. Your mortgage application gives your lender information about your employment background, income, and credit history. Once it’s complete, you’ll have a better understanding of what your monthly mortgage payments will be. Furthermore, if your application is pre-approved, you’ll receive an official letter of pre-approval, which you’ll turn over to your buyer’s agent.
If you’re a first-time homeowner, you may not be sure how to go about filling out your application. Below, we’ve shared some tips and advice on applying for a mortgage in Colorado.
Dos & Don’ts of Applying for a Mortgage
For most buyers, applying for a mortgage is not a complicated process. However, it will require you to have some information on hand. Here are some things that we recommend doing and not doing when filling out your application.
What to Do
Applying for a mortgage in Colorado is the first step to finally fulfilling your dream of becoming a homeowner. Here are some steps we suggest taking when filling out your application:
Do: Get your credit in shape before you apply.
Pay down high-interest debt, try to limit your spending, and make sure you make all of your payments on time. All of this will help raise your credit, which will increase your odds of approval.
Do: Get a good understanding of your finances.
It’s important to understand your financial situation so you know how much house you can afford. Just because your lender is willing to give you a certain amount doesn’t necessarily mean that’s how much you should borrow. Do what’s best for you financially.
Do: Shop around and compare Colorado mortgage lenders.
Not all mortgage lenders are the same. Don’t be afraid to shop around and compare offers. Remember, it’s more than just the money that matters; it’s also about the level of service you’ll receive.
What Not to Do
Avoid making these common mortgage application mistakes:
Don’t start shopping for homes before you get pre-approved.
You’ll need that pre-approval letter before you make an offer. And chances are, your buyer’s agent is going to require it before they start working for you.
Don’t make any major financial changes.
Don’t take out a new credit card, make a major purchase, or switch jobs.
Don’t forget to factor in closing costs and other fees.
When calculating your costs, you’ll need to factor in more than just a down payment. You should also consider lender fees, appraisal fees, and other potential expenses. Once you have all these expenses in mind, take a look at your savings and figure out how you’ll divide the funds. It may be worth it to purchase a more moderately priced home so you can put more money down. Ask your lender to run the numbers for you.
Ready to Apply? Let’s Get Started!
Call Mortgage Solutions Financial today to begin your mortgage application in Colorado.