Looking to finance your new home?
When buying a home, the mortgage loan application is very demanding for many people, but it doesn't have to be. I've got great connections to a lot of lenders in the DuBois area, and they've helped me recognize some things that will make the loan application process easy.
1 – Put together a list of questions about your loan program
Make sure you bring a list of questions with you if you find that you don't totally grasp the ins and outs of the various loan programs. One of my lenders or I can assist you in understanding the advantages and disadvantages of both programs, because it can be hard to understand the distinctions between both fixed and adjustable rate mortgages.
2 – Determine when to lock
When you lock in the interest rate, the mortgage lender is guaranteed to keep to the mortgage interest rates for the loan – typically at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between application and at the time of closing. Buyers who decide to float conclude that interest rates will drop in the near future. Click here to see the outlook for the next 90 days of interest rates.
3 – Decide if you want to pay additional points to reduce your interest rate
Generally you can choose to pay additional points to lower the rate of your loan. Each point is 1 percent of the mortgage loan and is payable in cash at closing. Click here to use my points calculator. It will assist you in determining if purchasing points is the best option for you.
4 – Bring your paperwork
Acquiring a loan requires a lot of paperwork, so you should spend some time getting your documents together. Click here to get a feel for general information that goes on a loan application.