Are you going to finance a new home in Burlington? David Massey Real Estate can help.
When buying a home, applying for financing is stressful for many people, but it doesn't have to be.
I'm pretty close with some lending companies in Burlington, and they've helped me understand some things that can make the process of applying for a loan effortless.
1 – Assemble a list of questions about your loan program
Make sure to have a list of questions with you if you find that you do not perfectly realize the pros and cons of all the various programs.
Oftentimes, it can be a challenge understanding the distinctions between both fixed and adjustable rate mortgages. I or one of my lenders will assist you in understanding the advantages and disadvantages of both.
2 – Determine when to lock
Locking in an interest rate designates that a lender commits to the interest rates for the loan – typically at the time the loan application is sent in.
By floating the rate, you can lock the rate anytime between the day you apply for the loan and issuance of closing documents. Buyers who prefer to float presume that the 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 rate
If you opt to pay additional points to lower the rate of your mortgage loan, you'll pay for them in cash at closing. Every point is 1 percent of the mortgage loan.
Click here to use our points calculator. It will assist you with determining if purchasing points is the best option for you.
4 – Compile your paperwork
Obtaining a mortgage loan requires lots of paperwork, so you should take some time to get your documentation together. Click here to get a list of general loan documentation.