Colorado Mortgage Pre Qualification

Written by Patricia Tunstall
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Colorado mortgage pre qualification is an important first step in purchasing a home, especially for first time buyers. One of the most frequent questions asked by prospective buyers is, how much house can I afford? Basically, Colorado mortgage pre qualification helps you to start answering that question so you can narrow your house hunting to property you can afford.

Borrowers can go in person to talk with local lenders, or they can use online mortgage calculators to get an approximate idea of how much they will be able to borrow. Requested information includes your monthly income and your monthly payments, so you can see this is not a complex, time-consuming procedure. You also need to fill in certain loan terms that you would prefer.

Colorado Mortgage Pre Qualification Terms

What interest rate would you like? Here, you might enter a figure that is the lowest you've found when doing comparison shopping. How long do you want the loan period to be? Five years? 10? 30? How large would your down payment be, in terms of a percentage of the sales price?

If you can, enter your anticipated property taxes and insurance. If you don't know, the online calculator will estimate these items and proceed to do the computations. Keep in mind that Colorado mortgage pre qualification is not pre-approval. The former merely gives you a good idea of how much you may borrow, but pre-approval tells you the specific loan amount you have been approved for even before you find the property you want.

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