Best Ways to Find a Mortgage Company in Colorado Springs CO

July 1, 2020
Last updated:
March 30, 2022
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Buying a home in Colorado Springs is a major financial investment, so you’ll want to be sure that you’re only entering into a contract that you are comfortable with. That’s why working with a seasoned mortgage company in Colorado Springs is so important.

These professionals will help you obtain the finances you need to buy a home while ensuring that your obligations are ones you can comfortably meet. In this article, we’ll provide useful tips on finding the best mortgage company in Colorado Springs to work with.

About the City of Colorado Springs

Colorado Springs is a gorgeous city in Colorado thanks largely to its location right at the base of the Rocky Mountains. It’s great for the outdoorsy type of person, not just because of the mountainous ranges, but also its many parks and trails. It’s a great city to live in, and as such, the demand is there for buyers.

Colorado Springs is the most heavily populated city in El Paso County and is considered to be one of the best places in the state to live in. Considering the desirability of Colorado Springs, you may face some competition from other prospective buyers.

For this reason, teaming up with an experienced mortgage company is highly recommended. These experts will take the confusion out of the mortgage application and approval process so you can quickly move through the procedure after finding the home of your dreams. Once an offer on a home is accepted, your mortgage lender will work to finalize your home loan so you can reach closing in a streamlined manner with no hiccups along the way.

This article will briefly outline the current real estate market in Colorado Springs and offer helpful tips to find the right mortgage company that will help you secure financing to purchase a new home.

Overview of the Colorado Springs Housing Market

As of the time of this writing (March 2022), the average home price in Colorado Springs is $469,987, according to Zillow. Property values have increased 26.8% over the past year, so the market has certainly seen some serious activity. According to Redfin, the housing market in Colorado Springs is extremely competitive. Most homes receive multiple offers and sell for about 3% over the listing price.

Homes sell very quickly as well, going pending in as little as 9 days after listing. Hot properties can go pending in about 4 days after listing and can sell as high as 8% over the asking price. Given these figures, it’s easy to see how competitive the market is in Colorado Springs and why you need the help of a trusted real estate agent and mortgage company to navigate these waters.

Based on the average home price in Colorado Springs, your down payment amount can vary from anywhere between $14,099 (based on a 3% down payment) and $93,997 (based on a 20% down payment). There is always the option to put an amount somewhere in between these figures, or even more.

The amount you choose to put down will not only depend on your finances, but on the mortgage company that you work with. That’s just one of the many reasons why choosing the right lender in Colorado Springs is important.

To help ensure that you’ve partnered with the right company, we’ve compiled a list of tips to make the right choice.

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Tip #1: Get Your Credit Score in Order

There are many factors that lenders look at when they assess a mortgage applicant, and your credit score is one of the more important ones. Your credit score paints a picture of your financial profile and is a key indicator of your risk level in the eyes of lenders.

The higher your credit score, the less risky you will be perceived, and therefore the higher your chances of getting approved for a mortgage. A high credit score typically means you’ve been responsible with your finances and have a history of timely bill payments.

A low credit score, on the other hand, tells a different story. Borrowers with low scores are considered high-risk and will have a more difficult time getting approved for a mortgage, or any other type of loan. A low credit score is typically reflective of missed or late bill payments, among other irresponsible financial habits. Not only will a low credit score make it more difficult to get approved for a mortgage, but it will also mean a much higher interest rate if you do manage to get approved.

For this reason, one of the first things you should do is improve your credit score, if it needs a boost. You can do this by:

  • Ensuring that all of your bill payments made on time every billing cycle
  • Spending no more than 30% of your credit card limit
  • Not taking out any additional credit or loans
  • Keeping old credit accounts open

You’ll have many more financial options available to you if you take the time to give your credit score a boost.

Tip #2: Ask For Referrals

Odds are, there are many people in your social circle who have purchased a home, even in the recent past. Ask these people – whether they’re friends, family, or co-workers – who they used as their mortgage lender. Ask them what their experience was like and if they would recommend the firm to you as your mortgage company to finalize a real estate transaction.

It can be helpful to get recommendations from people you trust, so asking around can be a great place to start when looking for and finding the best mortgage company in Colorado Springs.

At the same time, you may also want to take to the internet to look at reviews of various mortgage companies in Colorado Springs. Ideally, you’ll want to see a string of positive reviews. Having said that, you’ll want to make sure the reviews you are reading come from credible sources, as some review sites may not be entirely truthful. Also, you don’t want to place too much weight on individual reviews, but rather gain an overall sense of the mortgage company by reading as many reviews as you can.

Tip #3: Ask Relevant and Detailed Questions

You want to know as much as you can about the Colorado Springs mortgage company that you may potentially be working with, as well as the type of mortgage products they can offer you. And the best way to find out as much as you can is to ask relevant questions. Don’t be afraid to be as detailed as possible.

Some of the things you may want to ask include the following:

  • What mortgage products do you offer?
  • Is a fixed-rate or adjustable-rate mortgage better for me?
  • What interest rate can I get approved for?
  • What other fees do you charge?
  • What down payment amount is required?
  • Are there any down payment assistance programs available to me?
  • How much are closing costs?
  • What will my mortgage obligations be?
  • What terms do you offer?
  • Are mortgages provided in-house?

The way in which the mortgage company responds to these important questions will give you a sense of whether or not they are the type of firm that you will want to entrust with your mortgage. The answers will also help educate you more and make you a more informed client.

Tip #4: Compare Mortgage Interest Rates

Another crucial part of the process of choosing a mortgage company in Colorado Springs is comparing interest rates from various lenders. The interest rate is how lenders profit from providing mortgages and is tacked on to the principal amount that you owe when you take out a home loan. The rate you are charged will have a direct impact on the overall mortgage amount that you will have to pay back over the life of the loan.

Obviously, the higher the interest rate, the more you will have to pay out, while a lower rate will make the mortgage more affordable, That’s precisely why you want to make sure you’re getting the lowest interest rate possible on a mortgage you sign up for.

To do that, make sure to compare interest rates among various lenders to see where the lowest rates are. You can easily do this by conducting an internet search, then compare rates and lenders side by side.

Just make sure to take into consideration other fees that are charged. In some cases, a lender may offer a lower rate, but their high fees can offset any savings, so be sure to do your due diligence.

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Get More Info on Colorado Springs Mortgages From Sammamish Mortgage

There’s a lot to know about mortgages in Colorado Springs and the mortgage companies that provide them. At Sammamish Mortgage, we can provide you with all the information required about home loans without the need to do any leg work yourself. We’ve been helping borrowers all over Washington, Idaho, Colorado, and Oregon apply for mortgages since 1992, and we’d love to help you too. We offer plenty of mortgage programs with flexible qualification criteria, and we would love to speak to you about how we can help. Contact us today to get the info you need about home loans needed to buy a home in Colorado Springs!

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