Gold was discovered near Denver, Colorado, in 1858. Though the region has seen many economic ups and downs since then, it continues to attract tourists from around the world. Despite the high cost of living, more and people make Colorado their home. Mortgages are one thing that makes this possible.

The thriving Colorado Mortgage industry helps peoples dreams come true. According to Websters dictionary, the term mortgage means the process of "pledging of property to a creditor as security for the payment of a debt." In plain terms, it is a legal agreement by which the lender says, If you don't pay the loan back along with all of the fees and interest, then we, the lender, can have your house.

People apply for loans to meet large expenses like buying a house, purchasing a car, pursuing higher studies, or to handle emergency situations. When they apply for a loan, banks or lending agencies, known as creditors, require an evidence of ownership of some valuable property by the borrower. This is needed to prove that the borrower will be able to repay the loan without any problem. The borrower pledges the property to the lending bank when applying for the loan. If the borrower is not able to repay the loan according to the loan agreement, the lender may take possession of the borrowers property.

As the first step in mortgaging, the borrower advertises details about his house [or any other valuable property] to the prospective buyer, most often, the loan advancing organization. In plain terms, he convinces the buyer to obtain a loan. Obtaining a mortgage loan depends upon the borrowers Credit Profile or Credit Report. This is a documentation of how a borrower repaid any previous loans or met any previous financial obligations. It contains: Personal Identity Information, Employment Information, Credit Information, Public Record Information and References. The lending institution makes a very careful assessment of the documentation, plus the verification of the borrowers bank deposits.

Most lenders use FICO credit scores when assessing the borrowers credit report. According to FICO system, there are 5 factors that are weighted by lenders when assigning a credit score. They are: Borrowers Payment History [Punctuality in repayment of any earlier loans] (35%), Amount that is owed by the borrower on various accounts (30%), Credit History Length [Length of Payment history] (15%), Borrowers existing credit types and how they are used (10%), and New Credit [Number of recently opened accounts, and the ratio of these new accounts to that of total number of credit accounts] (10%). Though only worth 10%, the last mentioned factor is very important.