Applying for your new home loan
When buying a home, applying for the mortgage loan is very exasperating for most people, but it doesn't have to be.
I'm pretty close to many lenders in Burlington, and they've helped me realize some things that will make the loan application process very easy.
1 – Create a list of questions about your loan program
If you do not completely understand the advantages and disadvantages of all the various loan programs, be sure you bring a list of questions with you.
I or one of my lenders will assist you in understanding the advantages and disadvantages of each one, because it is hard to know the differences between fixed and adjustable rate mortgages.
2 – Decide when to lock
When you lock in the rate, a lender is guaranteed to hold to the interest rates for the loan – generally at the time the loan application is presented.
By floating the rate, you can lock the rate at any time between the day of your loan application and at the time of closing. Buyers who choose to float think the interest rates will fall in the near future. Click here to see the outlook for the next 90 days of interest rates.
3 – Determine if you want to pay additional points to decrease your interest rate
Normally you can decide to pay additional points to lower the interest rate of your loan. Every point is 1 percent of the mortgage loan and is payable in cash at closing.
To decide if you should purchase points, click here to use our points calculator.
4 – Bring your paperwork
Obtaining a mortgage 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 typical loan documentation.