What are PMI and MIP?

PMI and MIP are different types of mortgage insurance. If you’re putting less than 20% down on the purchase, and/or obtaining an FHA loan of some sort, mortgage insurance will be required. Depending on your goals (down payment, amount, credit score, etc.) we will present multiple mortgage insurance options. Not only do you have flexibility with the loan type, you also have options when it comes to mortgage insurance. Along the way we’ll discuss all the options we consider to be advisable.

How can I get rid of mortgage insurance?

The best way is to refinance. You’ll need an appraisal, and if you establish you have 20% equity then you don’t need mortgage insurance. If you don’t have 20% equity but have cash to pay down the mortgage, refinancing may be a better option than paying down an existing loan.

What type of loan is best for me?

The best loan type depends on your situation. We’ll ask questions about your down payment amount, estimated credit score, time period you expect to be in the home, and if you have any special qualifications or circumstances. These are initial questions that will frame our presentation of loan products, and is a means to point us in the right direction. We have tools, and the wherewithal to change gears if needed, to ensure you obtain the perfect loan program for your situation.

What about my credit score?

Before deciding on what terms lenders will offer you on a loan (which they base on the “risk” to them), they want to know two things about you: your ability to pay back the loan, and your willingness to pay back the loan. For the first, they look at your debt-to-income obligation ratio. For your willingness to pay back the loan, they consult your credit score.

The most widely used credit scores are FICO scores, which were developed by Fair Isaac & Company, Inc. (and they’re named after their inventor!). Your FICO score is between 350 (high risk) and 850 (low risk).

For more info, read our blog post: What is a credit score?

What are closing costs?

You incur closing costs to obtain the loan and your new home. Along the way many different services are provided, which are charged to you at the time of closing. The entire process is highly regulated, which results in very controlled and straight-forward costs. In our presentation of loan programs, we’ll make the total costs clear and offer you 5-15 different options. These options generally include the best rate available, as well as low-to-no closing cost options.

Branch Manager Michael Shotnik discusses closing costs more in the following video:

What paperwork do I need to provide?

  • Bank Statements
  • W-2’s
  • Paystubs
  • SSA (Social Security Administration to Release Social Security)
  • Mortgage Statements
  • Tax /IRS documents
  • More as needed by underwriting

How do I get started?

You can easily begin with our mortgage calculator, or just give us a call. The initial phone call will ask for info you should know off the top of your head: (income, approximate credit score, property value, loan amount, etc.) From there we can help you progress quickly and easily to the loan application, getting qualified and on your way!

Have more questions?
Contact us and we’re happy to answer them! Call us at: 303-800-4595!


Start the application process today!





Short, Quiet Week, But With Some Hopeful Hints For Housing and Rates
As evidence of just how quiet this week was for the bond...

Michael and Melissa are always a pleasure to work with. They are extremely responsive, professional and work hard to get the best loan for us. I would recommend Colorado Mortgage to anyone. Thank you for another great experience!

— Beverly Nieto, Google

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Sierra Pacific Mortgage Company, Inc.

Sierra Pacific Mortgage NMLS# 1788. Michael Shotnik NMLS: 218281, CO License: 100017466. Not licensed in Alaska or New York.  To check license status of mortgage loan originator, visit D.O.R.A. and NMLS consumer access.