Everyone wants to know – what are the current mortgage rates in Denver, Colorado? But it’s not that simple.
Sure, banks could show you the rates they start at for their ‘best’ borrowers, but they can’t tell you what rate you would get until you apply for the loan. Did you know that getting pre-approved for a loan doesn’t commit you to it?
Instead, it tells you how much loan you can afford and what a lender would charge you. It’s different than a pre-qualification which isn’t as ‘concrete’ as a pre-approval. If you want to know the current rates for a mortgage, you must apply for it.
Before you do, understand the difference between a pre-qualification and pre-approval so you make the right choice.
What is a Pre-Qualification?
A mortgage pre-qualification is only a verbal statement of what the lender may offer you. When you pre-qualify, you tell your loan officer your estimated credit score, income, assets, debts, and a bit about your employment history.
The loan officer uses the information you provide to estimate what you can afford. You may also get an estimated interest rate, but it has no bearing until the lender pulls your credit and sees your qualifying factors firsthand.
What is a Pre-Approval?
A pre-approval is the first step in the application process and is something all borrowers should do before they look at homes.
A pre-approval isn’t a guarantee for a loan, but it’s more solid than a pre-qualification. To get a pre-approval, you must complete a loan application, allow the lender to pull your credit, and you must provide proof of your qualifying factors.
An underwriter will look at all of your documentation and decide if you meet the requirements for the loan program. If so, they will give you an estimated interest rate based on your qualifying factors.
Here’s what most people don’t know. An estimated interest rate isn’t guaranteed. If you get pre-approved but don’t move forward with the loan for a month or so, you’ll be subjected to the current mortgage rates in Denver, Colorado. It’s not until you lock your rate in that you have a guaranteed rate.
Getting the best current mortgage rates in Denver, Colorado requires a bit of timing and good luck. If you watch rates, you’ll know when they increase or decrease. But that doesn’t mean your lender’s rates will change that much or they may change more.
The key is to stay in touch with your loan officer throughout the process. Get pre-approved early and as soon as rates get where you want them. Also, talk to your loan officer about locking in the rate.
If you aren’t sure how any of this works or you’re ready to secure your loan and take advantage of today’s low interest rates, contact me today. I’d be happy to walk you through the process and help you get the best interest rates today.