Thinking of financing your home?
Applying for the mortgage loan can be one of the most stressful aspects of buying a home, but it doesn't have to be.
I have a close relationship with several mortgage lenders in the Burlington area, and they've helped me realize a few things that will make the loan application process effortless.
1 – Make a list of questions regarding your loan program
If you find that you don't totally realize the pros and cons of all the different loan programs, be sure you bring a list of questions with you.
It's a challenge to know the distinctions between fixed and adjustable rate mortgages. I or one of my lender contacts will be able to help you understand the advantages and disadvantages of both.
2 – Determine when to lock
When you lock in the interest rate, it designates that the mortgage lender commits to the mortgage interest rates for the loan – generally at the time the loan application is submitted.
By floating the rate, you can lock the rate anytime between the loan application day and closing. Those who opt to float think that the 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 lower your rate
Usually you can choose 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 closing.
Click here to use our points calculator. It will assist you in determining if buying points is the best option for you.
4 – Gather your paperwork
Getting a loan requires a lot of paperwork, so you should take some time to get your documentation together. Click here for a list of typical loan documentation.