Do you want to finance a home?
For most people, applying for a loan is one of the more stressful parts of buying a house, but it doesn't have to be. We have amazing lenders to work with in this area and they've helped us learn a few things that can make the loan application process pretty simple.
1 – Make a list of questions about your loan program
Make a list of questions you have for the lender. Schedule an appointment to discuss the different loan options, advantages and disadvantages of all the different programs. It's never to early to start this process. When you prequalify for a loan to begin your housing search, it's also good to know what your loan options are and what your plans will be for financing a home.
2 – Determine when you want to lock
By locking in the interest rate, your lender is guaranteeing 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 loan application day and the issuing of closing documents. Buyers who elect to float believe the interest rates will decline 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 decrease your interest rate
When you choose to pay additional points to lower the rate of your loan, you will do so by paying for them in cash at the time of closing. Each point is 1 percent of the mortgage loan. Click here to use our points calculator. This tool will assist you in deciding if purchasing points is the best option for you.
4 – Bring your paperwork
Getting a loan requires lots of paperwork, so you should take some time to get all your documentation together. Click here for a list of normal loan documentation.