Thinking of financing your home?
When purchasing a home, applying for a loan is demanding for many people, but it doesn't have to be.
I have a close business relationship with several lending companies in Saint Cloud, and they've helped me recognize a few things that will make the process of applying for a loan a breeze.
1 – Make a list of questions regarding your loan program
Make sure you have a list of questions with you if you do not entirely understand the ins and outs of the different loan programs.
It's hard to know the distinctions between fixed and adjustable rate mortgages. I or one of my lenders will be able to assist you in understanding the advantages and disadvantages of both.
2 – Decide when to lock
By locking in the rate, your mortgage lender is guaranteeing the mortgage interest rates for the loan – often 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 issuance of closing documents. Buyers who prefer to float believe that the 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 lower your interest rate
Generally you can elect to pay additional points to lower the rate of your mortgage loan. Every point is 1 percent of the mortgage loan and is payable in cash at closing.
If you're undecided as to whether or not buying points is right for you, click here to use our points calculator.
4 – Compile your paperwork
Getting a mortgage loan requires lots of paperwork, so you should spend some time getting your documents together. Click here for a list of general loan documentation.