Applying for a loan
Many people think that applying for financing is one of the more demanding elements of buying a house, but it doesn't have to be.
Being connected with some lending companies in the Burlington area has helped me realize a few things that make the loan application process a breeze.
1 – Assemble a list of questions about your loan program
If you don't fully comprehend the advantages and disadvantages of the various programs, make sure to bring a list of questions with you.
I or one of my lenders can help you understand the advantages and disadvantages of each program, because it's a challenge to understand the characteristics of fixed and adjustable rate mortgages.
2 – Decide when you want to lock
By locking in the interest rate, a mortgage lender is keeping to the interest rates for the loan – usually at the time the loan application is presented.
By floating the rate, you can lock the rate at any time between the loan application day and issuance of closing documents. Those who elect to float think that interest rates will dip 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 reduce your interest rate
Typically you can opt to pay additional points to lower the interest rate of your loan. Every point is 1 percent of the loan and is payable in cash at the time of closing.
Click here to use our points calculator. This tool will help you determine if purchasing points is the best option for you.
4 – Bring your paperwork
Getting a mortgage loan requires a lot of paperwork, so you should spend some time getting your documents together. Click here for a list of typical loan documentation.