Applying for your home loan

When purchasing a home, applying for the loan is a very distressing event for a lot of people, but it doesn't have to be. I'm pretty familiar with a lot of lenders in Punta Gorda, and they've helped me realize a few things that make the process of applying for a loan very manageable.

1 – Compose a list of questions regarding your loan program

If you don't entirely understand the pros and cons of all the different loan programs, make sure you bring a list of questions with you. At times, it can be a challenge to understand the differences between fixed and adjustable rate mortgages. I or one of my trusted lenders will assist you with understanding the advantages and disadvantages of each program.

2 – Determine when to lock

When you lock in the interest rate, it designates that a mortgage lender holds to the interest rates for the loan – normally at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the day of your loan application and closing. Buyers who choose to float believe that 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

Generally you can choose to pay additional points to lower the rate of your loan. Each 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 assist you with deciding if purchasing points is the best option for you.

4 – Bring your paperwork

Getting a loan requires a lot of paperwork, so you should take some time to get all your documents together. Click here for a list of normal loan documentation.