Applying for Your Loan

Are you financing your new home?

Feeling lots of anxiety over applying for a mortgage? You don't have to be. Here's a few tips on what you should do to get started.

1 – Make a list of questions about your loan program

Make sure to bring a list of questions with you if you don't perfectly grasp the advantages and disadvantages of the various programs. I or one of my lender contacts can assist you in understanding the advantages and disadvantages of both programs, because it is hard to know the differences between fixed and adjustable rate mortgages.

3 – Determine if you want to pay additional points to lower your interest rate

When you choose to pay additional points to lower the rate of your mortgage loan, you'll pay for them in cash at closing. Each point is 1 percent of the mortgage loan.

2 – Decide when to lock

When you lock in the interest rate, it means that your mortgage lender guarantees the mortgage interest rates for the loan – commonly at the time the loan application is sent in. By floating the rate, you can lock the rate at any time between the day you apply for your loan and the issuing of closing documents. Buyers who choose to float think that interest rates will dip in the near future.

4 – Compile your paperwork

Obtaining a loan requires lots of paperwork, so you should take some time to get your documentation together.