Are you financing a home?
When purchasing a home, applying for the loan is troublesome for many people, but it doesn't have to be.
Being familiar with a lot of mortgage lenders in the DuBois area has helped me recognize some things that will make the process of applying for a loan a snap.
1 – Put together a list of questions regarding your loan program
Be sure to bring a list of questions if you don't entirely understand the pros and cons of all the various loan programs.
I or one of my trusted lenders will be able to help you understand the advantages and disadvantages of each one, because it can be a challenge to understand the differences between fixed and adjustable rate mortgages.
2 – Decide when you want to lock
Locking in a rate signifies that your lender guarantees the mortgage interest rates for the loan – generally at the time the loan application is presented.
By floating the rate, you can lock the rate at any time between the day of your loan application and at the time of closing. Those who elect to float presume that the interest rates will decline 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 decrease your interest rate
If you choose to pay additional points to lower the rate of your mortgage loan, you will pay for them in cash at closing. Every point is 1 percent of the mortgage loan.
Click here to use our points calculator. It will assist you with deciding if purchasing points is right for you.
4 – Compile your paperwork
Acquiring a mortgage loan requires lots of paperwork, so you should take some time to get all your documentation together. Click here to get a list of normal loan documentation.