Home Loans In Colorado Springs, Colorado 

Colorado Springs is Colorado’s second-most populous city and 40th-most populous in the United States. It is home to 24 national sports governing bodies like the United States Olympic & Paralympic Committee and the United States Olympic Training Center.

The housing market in Colorado Springs remains hot, especially with the latest ranking by U.S. News, which shows the city as sixth among the top 150 Best Places to Live in the U.S. 

If you dream of being a homeowner in Colorado Springs, you’ll likely need to obtain a mortgage loan. We can help. But first, you should know how to improve your chances of getting the right mortgage for your needs.

Tips For Securing A Mortgage

A mortgage loan application process indeed requires patience and cooperation. It is also true that just because you’ve been pre-qualified for a loan or even pre-approved doesn’t necessarily mean your application will be approved. 

That’s why getting it right from the start is essential, so you don’t waste time going through the process only to end up with a rejected application. With that in mind, here are some tips to consider:

• Check Your Credit Score

This three-digit figure can determine the fate of your mortgage application. Lenders may reject or accept your application based on your credit score. If they take your application, the credit score will also be the basis of the interest rates, among other considerations. 

There are five categories of FICO scores: poor (300-579), fair (580-669), good (670-739), excellent (740-799), and exceptional (800-850). A fair credit score can qualify you for an FHA loan, but it won’t suffice for a conventional loan.

• Review Your Credit Report

Ensure all the recorded information is accurate when you get a credit report from any of the big three credit bureaus — Experian, Equifax, and TransUnion. Review the transactions listed and check if there are errors. 

No matter how small, any errors can negatively impact your credit score. If you notice any discrepancies, such as an on-time payment recorded as a late payment, file a dispute immediately to have the report updated. 

• Lower Your Debt-to-Income (DTI) Ratio

The DTI ratio is another crucial factor in mortgage loan applications. It tells you how well you managed credit in the past and how much of your monthly gross income is spent on repaying your debts. The percentage of your gross monthly income pays your monthly obligations.

You must be aware of two types of debt-to-income ratios: (a) the front-end ratio and (b) the back-end ratio.

Front-end ratio = also known as a household ratio. The dollar amount of your proposed housing expense (your future monthly mortgage payment includes the principal, interest, taxes, insurance, and homeowners association fees – is divided by your gross monthly income. The ideal front-end ratio is less than 36%

Back-end ratio = includes all monthly debts you pay – credit cards, student loans, personal loans, car loans, and others PLUS your proposed housing expense. Anything above 45% may impact your application. 

If your DTI is too high, you will likely struggle to qualify for a mortgage. One of the best ways to lower your DTI is to pay off as much of your current debts as possible before applying for a mortgage. You may also increase your monthly income without taking on any new debt. 

Colorado Springs, Colorado Mortgage Lender

At Capital Home Mortgage, we offer a transparent mortgage application process. We’ll discuss all the steps in applying and the fees you need to pay. We’re also happy to provide expert advice on boosting your chances of getting approved for the right home loan. 

Since we’re a direct mortgage lender, you can expect lower processing fees and competitive interest rates. Our loan officers will work with you directly throughout the process, meaning you don’t have to worry about certain charges, such as broker fees. 

Get a Home Loan in Colorado Springs

Turn to Capital Home Mortgage to find the perfect mortgage product for your needs. Call us at (303) 226-1177 to get started.