Thinking of financing your new home?
A lot of people believe applying for mortgage financing is one of the most exasperating parts of buying a home, but it doesn't have to be.
Being connected with some mortgage lenders in the Burlington area has helped me learn some things that will make the process of applying for a loan a breeze.
1 – Create a list of questions about your loan program
If you do not thoroughly realize the advantages and disadvantages of all the different loan programs, be sure you have a list of questions with you.
It is hard to understand the distinctions between both fixed and adjustable rate mortgages. I or one of my lender contacts will assist you with understanding the advantages and disadvantages of both programs.
2 – Determine when to lock
When you lock in the rate, a mortgage lender is guaranteed to keep to the mortgage interest rates for the loan – often at the time the loan application is presented.
By floating the rate, you can lock the rate at any time between application and at the time of closing. Those who prefer to float believe that interest rates will fall 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 decrease your interest rate
Normally you can decide to pay additional points to lower the rate of your loan. Each point is 1 percent of the loan and is payable in cash at closing.
To determine if purchasing points is right for you, click here to use our points calculator.
4 – Bring your paperwork
Obtaining a loan requires a lot of paperwork, so you should take some time to get all your documents together. Click here to get a list of common loan documentation.