Applying for a new home loan with the help of Hoffer Realty Associates

For many people, applying for the loan can be one of the most exasperating parts of purchasing a house, but it doesn't have to be. I have a close business relationship with some mortgage lenders in DuBois, and they've helped me understand some things that can make the loan application process a snap.

1 – Compose a list of questions regarding your loan program

Make sure you have a list of questions with you if you find that you do not totally understand the advantages and disadvantages of all the different loan programs. I or one of my lenders will be able to help you understand the advantages and disadvantages of each one, because it is a challenge to know the differences between fixed and adjustable rate mortgages.

2 – Determine when you want to lock

By locking in a rate, your lender is keeping to the 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 the day you apply for your loan and closing. Buyers who choose to float conclude that 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 lower your rate

When you elect to pay additional points to lower the rate of your mortgage loan, you'll pay for them in cash at closing. Every point is 1 percent of the mortgage loan. To decide if buying points is right for you, click here to use our points calculator.

4 – Gather your paperwork

Obtaining a mortgage loan requires a lot of paperwork, so you should take some time to get your documentation together. Click here to get a list of general loan documentation.