Are you financing a new home?
Applying for a mortgage loan is one of the most troublesome aspects of purchasing a house, but it doesn't have to be.
I'm very connected to many lending companies in Arcadia, and they've helped me recognize some things that can make the loan application process very easy.
1 – Put together a list of questions regarding your loan program
If you find that you don't fully comprehend the pros and cons of the various programs, be sure you have a list of questions.
It can be a challenge understanding the characteristics of both fixed and adjustable rate mortgages. I or one of my lender contacts will be able to help you understand the advantages and disadvantages of each one.
2 – Determine when you want to lock
By locking in a rate, your mortgage lender is keeping to the mortgage interest rates for the loan – generally at the time the loan application is presented.
By floating the rate, you can lock the rate anytime between the loan application day and at the time of closing. Those who opt to float think that the interest rates will decline 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 lower your rate
Normally you can decide to pay additional points to lower the interest rate of your mortgage loan. Each point is 1 percent of the mortgage loan and is payable in cash at the time of closing.
Click here to use our points calculator. This tool will assist you with deciding if purchasing points is the best option for you.
4 – Gather your paperwork
Acquiring a loan requires lots of paperwork, so you should spend some time getting all your documentation together. Click here for a list of general loan documentation.