Thinking about financing a new home?
Applying for the loan is one of the most stressful elements of buying a house for a buyer, but it doesn't have to be.
I'm pretty close with many mortgage lenders in the Punta Gorda area, and they've helped me learn some things that can make the process of applying for a loan a snap.
1 – Create a list of questions regarding your loan program
If you find that you don't entirely understand the pros and cons of the different loan programs, be sure you bring a list of questions.
At times, it can be a challenge understanding the characteristics of both fixed and adjustable rate mortgages. I or one of my lenders can help you understand the advantages and disadvantages of both.
2 – Determine when you want to lock
When you lock in an interest rate, your lender is guaranteed to keep to the mortgage interest rates for the loan – ordinarily at the time the loan application is sent in.
By floating the rate, you can lock the rate at any time between application and at the time of closing. Those who prefer to float conclude that the interest rates will drop 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 reduce your interest rate
Usually you can decide to pay additional points to lower the interest rate of your loan. Every point is 1 percent of the mortgage loan and is payable in cash at closing.
To determine if you should purchase points, click here to use our points calculator.
4 – Bring your paperwork
Acquiring a mortgage loan requires a lot of paperwork, so you should spend some time getting all your documents together. Click here to get a list of normal loan documentation.