Are you thinking of financing a new home?

For a lot of people, applying for a mortgage loan can be one of the more stressful elements of purchasing a house, but it doesn't have to be. Having connections with some lending companies in the DuBois area has helped me recognize a few things that will make the loan application process a breeze.

1 – Compose a list of questions regarding your loan program

Be sure to bring a list of questions if you find that you don't totally comprehend the pros and cons of the different programs. 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 help you understand the advantages and disadvantages of both programs.

2 – Determine when you want to lock

When you lock in the interest rate, it designates that your mortgage lender commits to the mortgage interest rates for the loan – normally at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the loan application day and closing. Those who elect to float think 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 decrease your interest rate

Usually you can choose to pay additional points to lower the rate of your mortgage loan. Each point is 1 percent of the loan and is payable in cash at closing. To decide if purchasing points is the best option for you, click here to use our points calculator.

4 – Compile your paperwork

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

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