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How to Find a Lender
Today, lenders can be found through a variety of sources. In addition to searching online, you can compare lenders through referrals from your REALTOR®, friends, family, and other trusted professionals. Golesh Team would be happy to suggest experienced lenders we have worked with successfully who understand the Colorado market and can help you explore financing options based on your financial situation and the type of property you are purchasing.
Choosing the Right Lender
Interview several lenders to evaluate the following:
- Ability to explain financing clearly and return your calls or messages in a reasonable amount of time
- Competitiveness of interest rates, closing costs, and other fees
- Availability of loan programs that suit your financial profile and the type of Colorado property you want to purchase
- Knowledge of local market conditions and experience with the type of property you are buying
Choosing the Right Kind of Loan
Today there are many types of mortgage loans available, and the best option will depend on your financial situation, goals, credit profile, and how long you expect to own the property. Your lender is the best person to help you compare available loan programs and understand their costs, benefits, and risks. Below is a summary of three common loan types; for more detailed information, speak directly with your lender.
- Fixed-Rate Loan: A fixed-rate mortgage keeps the interest rate the same for the life of the loan, which can provide predictable principal and interest payments. Common loan terms include 15, 20, and 30 years. A fixed-rate loan may be a good option if you plan to own your Colorado property for an extended period and value payment stability.
- ARMs (Adjustable-Rate Mortgages): An adjustable-rate mortgage may offer a lower initial interest rate than some fixed-rate loans, although the rate can change after the initial period according to the terms of the loan. If you are considering an ARM, make sure you understand the index, adjustment periods, rate caps, payment changes, and potential risks before choosing this option.
- Intermediate ARMs: Also known as hybrid adjustable-rate mortgages, these loans typically offer a fixed interest rate for an initial period, such as 3, 5, 7, or 10 years, before the rate adjusts according to the terms of the loan. These programs can offer a combination of initial payment stability and adjustable-rate features, but it is important to understand how and when future adjustments can occur.