Tips About Home Mortgages in Colorado and Everywhere Else Too!

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Mortgage and Lending with First Time Home Buyer, Mortgage Rates, Pre-Approval NMLS 243370

Tips About Home Mortgages in Colorado and Everywhere Else Too!

The things that matter in life do not always come easily. It is hard to find a Colorado home mortgage which best fits your budget. You need proper knolwedge and patience to completely understand your options. Use the advice here to get the best mortgage for your house.

TIP! Before trying to get a mortgage approval, find out your credit score. Mortgage lenders can deny a loan when the borrower has a low credit score caused by late payments and other negative credit history.


Regardless of how much of a loan you're pre-approved for, know how much you can afford to spend on a home. Write out your budget. Include all your known expenses and leave a little extra for unforeseeable expenses that may pop up. Do not buy a more expensive home than you can afford.

Prepare your paperwork before applying for a mortgage. There are many items that a lender will require. These items include the last two or three years worth of tax returns, copies of each of your monthly credit card statements and installment loans. Three months bank statements and two months worth of pay stubs are also needed for approval.

TIP! Know your credit score before beginning to shop for a home mortgage. If your credit score is low, it can negatively affect the interest rate offered.


Consider a mortgage broker instead of a bank, especially if you have less than perfect credit. Unlike banks, mortgage brokers have a variety of sources in which to get your loan approved. Additionally, many times mortgage brokers can get you a better interest rate than you can receive from a traditional bank.

When you decide to apply for a mortgage, make sure you shop around. Before deciding on the best option for you, get estimates from three different mortgage brokers and banks. Although, interest rates are important, there are other things you should consider also such as closing costs, points and types of loans.

TIP! Talk to your family and friends about where they got their home mortgages. Sometimes the best recommendations are from those immediately around you.


Take a look at the past property tax payments on any house you are considering buying. You have to understand how your taxes will increase over time. The tax assessor may consider your property to be more valuable than you expect, leading to an unpleasant surprise at tax time.

Try to make extra payments on thirty year mortgages. This will pay off your principal. This will help you pay your loan even faster and reduce your total interest amount.

TIP! Before applying for a mortgage loan, check your credit score and credit history. Any lender you visit will do this, and by checking on your credit before applying you can see the same information they will see.


Stay persistent with your home mortgage hunt. Even if you have one lender rejects you, it doesn't mean they all will. Many tend to follow Freddie Mac and Fannie Mae's guidelines. They may also have underwriting guidelines. Depending on the lender, these may stricter than others. You can always ask the lender why you were denied. Depending on the reason they give, you can try improving your credit quickly, or you can just go with a different lender.

If you are able to pay more for your monthly payments, it is a good idea to get a shorter-term loan. Most lenders will give you a lower rate if you opt to pay your mortgage over 20 years instead of 30 years. Borrowers who get shorter term loans (such as 15 or 20 years terms) are considered less risky than those with longer term loans, resulting in lower interest rates.

TIP! If you can afford a higher monthly payment on the house you want to buy, consider getting a shorter mortgage. Most mortgage loans are based on a 30-year term.


With a decision as important as signing a mortgage for a new home, you will need to ensure you understand everything fully. This will take you some knowledge, energy and a little time. That's where articles like this come into play. Follow the information to gain a better understanding of the process.

Ben Yost Is has helped 1000's of Home Buyers in Colorado
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Thanks,

Ben Yost
Loan Consultant | nmls# 243370

loanDepot
55 Madison Street Suite 650 

Denver, CO 80206

 

Cell:     303.587.4297

Office:  720-543-2318

Email: byost@loandepot.com
Web:  
www.benyostmortgage.com

 

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