Applying for a home loan

Most people believe that applying for mortgage financing is one of the most demanding aspects of purchasing a home, but it doesn't have to be. I have a close business relationship with several lending companies in Burlington, and they've helped me realize a few things that make the loan application process much easier.

1 – Create a list of questions regarding your loan program

If you find that you do not entirely realize the ins and outs of the different programs, make sure you bring a list of questions. I or one of my lenders will assist you with understanding the advantages and disadvantages of each one, because it can be hard to know the differences between fixed and adjustable rate mortgages.

2 – Determine when to lock

Locking in the interest rate indicates that your mortgage lender holds to the interest rates for the loan – most often at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between the day you apply for your loan and at the time of closing. Those who opt to float believe that 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 choose to pay additional points to lower the rate of your loan, you will pay for them in cash at closing. Every point is 1 percent of the loan. To determine if purchasing points is right for you, click here to use our points calculator.

4 – Compile your paperwork

Getting a 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 general loan documentation.