Are you financing your home?
Applying for a mortgage loan is one of the most troublesome parts of purchasing a house for a buyer, but it doesn't have to be.
I'm very close to many lending companies in the Burlington area, and they've helped me understand some things that will make the loan application process very easy.
1 – Compile a list of questions about your loan program
If you find that you do not entirely understand the advantages and disadvantages of all the various programs, make sure you bring a list of questions with you.
Oftentimes, it can be a challenge understanding the characteristics of fixed and adjustable rate mortgages. I or one of my lenders will help you understand the advantages and disadvantages of each one.
2 – Decide when to lock
Locking in the rate denotes that your lender holds to the interest rates for the loan – typically at the time the loan application is presented.
By floating the rate, you can lock the rate anytime between the loan application day and closing. Buyers who choose to float believe that the interest rates will decline 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
Typically you can elect to pay additional points to lower the rate of your loan. Every point is 1 percent of the loan and is payable in cash at closing.
If you're undecided as to whether or not purchasing points is right for you, click here to use our points calculator.
4 – Bring your paperwork
Getting a mortgage loan requires a lot of paperwork, so you should spend some time getting all your documents together. Click here for a list of common loan documentation.