8 Things You Should Look For in Your Colorado Lender

If you are considering purchasing a home then you are likely going to need a loan and that requires that you to apply for a mortgage.  But don’t settle for just any lender as they are not all the same and they might not all all have your best interests in mind. There are many lenders to choose from and we know that you have options.  Banks, private organizations and other resources are available and ready to offer loans to the right people, but just because someone is ready to loan you money for a house doesn’t mean you should take it. It is important that potential buyers look in to the lender that is recommended to them to ensure that they are in good standing, ethnical and have their best interests in mind.

Interest Rates

High interest rates make home buying more expensive. A lender’s interest rate dictates the amount of money you will pay during the life of a mortgage. Although interest rates are determined by existing economic situations, always go for a lender with comparatively low rates.  Some lenders have high rates and high pressure sales tactics. If you feel a hard sale coming on, we advise you shop around.

License

This may seem obvious but you would be surprised how often a lender is not licensed in your State.  This can cause major headaches down the road as well as serious financial consequences.

Reliability

You may be dealing with your lender for many years to come.  Just as you would read reviews and testimonials on any other company you are considering dealing with, you should do the same for a lender.  Other peoples’ experience with them may help you decide if they are the right lender for you.

Maturity Time

The amount of time it takes to repay the loan determines how much you will save on interest rates and the overall cost of the loan. Loans with longer maturity times tend to cost more compared to those with shorter maturity periods.

Loan Terms

Good credit terms help you cut costs on buying a home by doing away with higher interest rates and other fees.  Look for a lender with good terms by comparing different mortgage proposals from various lenders.

Affordability

You Colorado lender should be affordable both in short term and long term perspectives. Consider a mortgage that is sustainable for years to come.

Loan Type

Make yourself familiar with the type of loans extended by your Colorado lender. Differentiate if they provide fixed or adjustable rate home loans, 15 year or 30-year mortgages, or if you can buy a short sale home with your loan.  Knowing the loan types offered makes it easier to find the perfect home for your family.   Above all else, is your lender experienced?  Have they been in business long or are they just starting out?  Know who your lender is, even if you have a trusted broker, so that you are walking in to one of the biggest financial commitments of your life with your eyes wide open.