Are you looking to finance your home?
When purchasing a home, applying for the loan is a troublesome event for a lot of people, but it doesn't have to be.
I have a close business relationship with various mortgage lenders in Burlington, and they've helped me understand a few things that make the loan application process a breeze.
1 – Compile a list of questions about your loan program
If you do not perfectly realize the ins and outs of all the various loan programs, be sure you bring a list of questions with you.
Oftentimes, it can be a challenge understanding the distinctions between fixed and adjustable rate mortgages. I or one of my lender contacts will be able to assist you with understanding the advantages and disadvantages of both.
2 – Decide when you want to lock
When you lock in a rate, it signifies that a lender guarantees the 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 day you apply for the loan and issuance of closing documents. Buyers who decide to float think that the interest rates will plunge 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 rate
When you elect to pay additional points to lower the interest rate of your loan, you will pay for them in cash at the time of closing. Each point is 1 percent of the mortgage loan.
Click here to use our points calculator. It will help you decide if purchasing points is right for you.
4 – Gather your paperwork
Obtaining a mortgage loan requires lots of paperwork, so you should spend some time getting all your documentation together. Click here for a list of typical loan documentation.