Are you going to finance a new home in Burlington?
Applying for a loan can be one of the most exasperating aspects of purchasing a house for a buyer, but it doesn't have to be.
I'm pretty familiar with several lenders in Burlington, and they've helped me understand some things that can make the loan application process pretty simple.
1 – Put together a list of questions regarding your loan program
Be sure you bring a list of questions if you do not completely understand the pros and cons of all the different programs.
It is a challenge to know the differences between fixed and adjustable rate mortgages. I or one of my lenders can help you understand the advantages and disadvantages of each one.
2 – Determine when you want to lock
Locking in the rate means that your lender holds to the interest rates for the loan – ordinarily at the time the loan application is received.
By floating the rate, you can lock the rate anytime between the day you apply for your loan and closing. Buyers who elect to float believe the interest rates will plunge 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
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 the time of closing.
Click here to use our points calculator. This tool will assist you in determining if buying points is the best option for you.
4 – Gather your paperwork
Acquiring a loan requires a lot of paperwork, so you should spend some time getting your documentation together. Click here for a list of general loan documentation.