Thinking about financing a new home in DuBois?

When purchasing a home, applying for the loan is a very stressful event for a lot of people, but it doesn't have to be. I'm very well-connected with a lot of lending companies in the DuBois area, and they've helped me realize a few things that can make the process of applying for a loan easy.

1 – Create a list of questions about your loan program

Make sure to bring a list of questions if you do not fully realize the pros and cons of all the various programs. I or one of my lenders will be able to assist you in understanding the advantages and disadvantages of both programs, because it's a challenge to understand the differences between fixed and adjustable rate mortgages.

2 – Decide when you want to lock

By locking in the rate, the mortgage lender is keeping to the interest rates for the loan – normally at the time the loan application is sent in. By floating the rate, you can lock the rate at any time between application and the issuing of closing documents. Those who opt to float believe that the interest rates will plunge 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 rate

Typically you can choose to pay additional points to lower the rate of your mortgage loan. Every point is 1 percent of the mortgage loan and is payable in cash at closing. Click here to use our points calculator. This tool will assist you in determining if purchasing points is right for you.

4 – Gather your paperwork

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

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