Do you wish to finance a new home?

When purchasing a home, applying for a mortgage loan is demanding for many people, but it doesn't have to be. Being connected to various mortgage lenders in DuBois has helped me understand some things that make the process of applying for a loan a snap.

1 – Organize a list of questions regarding your loan program

If you find that you do not perfectly understand the advantages and disadvantages of the various loan programs, be sure to bring a list of questions with you. At times, it can be a challenge to understand the distinctions between fixed and adjustable rate mortgages. I or one of my trusted lenders can assist you in understanding the advantages and disadvantages of both programs.

2 – Determine when to lock

When you lock in the rate, a lender is guaranteed to commit to the interest rates for the loan – commonly at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the day of your loan application and the issuing of closing documents. Those who decide to float think interest rates will plunge 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 rate

Normally you can opt to pay additional points to lower the interest rate of your loan. Every 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 help you decide if purchasing points is right for you.

4 – Gather your paperwork

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