Boulder Colorado Home Mortgage Pre-Approval
Today’s Boulder Colorado real estate market is moving fast. Pre-approval is a critical step for buyers seeking to have all their ducks in a row. A pre-approved loan is one of the important steps you can take to be prepared. I have had clients win in compete situations just by being”Pre-Approved” for the home loan.
Completing the pre-approval process will also help you understand the different types of loan options, how you will take title to the home, what your credit score means in terms of rate and borrowing capacity and what sort of closing costs to expect.
Getting pre-approved is an especially good idea if you are receiving a down payment gift from a loved one or having a family member co-sign the loan.
Top Five Reasons to Get Pre-Approved:
- Credit Repair Issues – sometimes a forgotten credit issue can come up on when applying for home financing. A solid lender can walk you through the process of fixing your credit to successfully purchase your new home.
- Access to lending options – an investment of time up front can you save you money once you get under contract. There are many loan options out there. For instance, while many bemoan the ARM – Adjustable Rate Mortgage, I have actually had my personal home financed with one for the prior eight years (including through the recession). My rate has consistently fallen and is under 3% PI today. Taking time to understand the various mortgage options can save you money on your payment and open doors you may not even be aware exist.
- Know before you owe – a good lender will supply a GFE – Good Faith Estimate. This will detail all loan expenses, the interest rate and more. Your lender can supply a amortization schedule so you can see what you will pay over the life of the loan.
- Pre-Approval Letter – in our world of multiple offers, the pre-approval letter and follow up “feel-good” conversation from the mortgage lender is key to winning the house of your dreams. A good mortgage lender will craft a personalized pre-approval letter for each offer you submit.
- Professional Advice – having a professional mortgage advisor assisting you from the start is an advantage. Don’t wait to take this key step. I can recommend a number of excellent mortgage advisors to assist you today.
I’m Bob Gordon, blogging daily for 365 days on Boulder Colorado real estate. Thanks for checking out my site and give me a call at 303-443-3334 to discuss your real estate needs. Additional Resources (updated 5/19/14): comprehensive Mortgage Lender List