Applying for a new home loan

Many buyers think that applying for mortgage financing is one of the most distressing parts of purchasing a house, but it doesn't have to be. I'm well-connected with some mortgage lenders, and they've helped me recognize a few things that make the loan application process uncomplicated.

1 – Assemble a list of questions about your loan program

If you do not totally understand the pros and cons of the various programs, be sure to have a list of questions with you. I or one of my lender contacts can assist you with understanding the advantages and disadvantages of each program, because it's hard to understand the distinctions between both fixed and adjustable rate mortgages.

2 – Decide when to lock

When you lock in the interest rate, your mortgage lender is guaranteed to keep to the interest rates for the loan – ordinarily at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between the day you apply for the loan and issuance of closing documents. Buyers who choose to float think 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 – Determine if you want to pay additional points to reduce your interest rate

Generally you can opt to pay additional points to lower the rate of your mortgage loan. Each point is 1 percent of the mortgage loan and is payable in cash at closing. To determine if you should buy points, click here to use our points calculator.

4 – Bring your paperwork

Getting a mortgage loan requires lots of paperwork, so you should take some time to get your documentation together. Click here for a list of common loan documentation.

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