Thinking about financing a new home?

Most buyers believe that applying for mortgage financing is one of the more stressful elements of purchasing a home, but it doesn't have to be. Being connected with several mortgage lenders in DuBois has helped me recognize a few things that can make the loan application process a breeze.

1 – Create a list of questions regarding your loan program

Be sure to have a list of questions if you find that you don't fully realize the ins and outs of the different loan programs. I or one of my lender contacts can assist you in understanding the advantages and disadvantages of both programs, because it can be hard to know the differences between fixed and adjustable rate mortgages.

2 – Decide when to lock

When you lock in the interest rate, a lender is guaranteed to hold to the mortgage interest rates for the loan – most often at the time the loan application is sent in. By floating the rate, you can lock the rate anytime between application and issuance of closing documents. Those who prefer to float presume interest rates will drop 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 reduce your rate

Usually you can elect to pay additional points to lower the interest rate of your mortgage loan. Each point is 1 percent of the mortgage 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 – Bring your paperwork

Getting a loan requires a lot of paperwork, so you should spend some time getting all your documents together. Click here for a list of general loan documentation.

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