Do you wish to finance a home?
When buying a home, the mortgage loan application is very stressful for many people, but it doesn't have to be. I have close business relationships with a lot of lenders in the Escondido area, and they've helped me understand some things that make the loan application process pretty simple.
1 – Compose a list of questions about your loan program
Make sure you have a list of questions if you find that you don't thoroughly understand the ins and outs of the different loan programs. At times, it can be a challenge to know the differences between both fixed and adjustable rate mortgages. One of my lenders or I will assist you in understanding the advantages and disadvantages of both programs.
2 – Determine when you want to lock
When you lock in a rate, a lender is guaranteed to hold to the mortgage interest rates for the loan – typically at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the day you apply for the loan and the issuing of closing documents. Those who prefer to float think that the interest rates will drop 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 lower your interest rate
Usually you can elect to pay additional points to lower the rate of your mortgage loan. Every point is 1 percent of the loan and is payable in cash at the time of closing. To determine if purchasing points is right for you, click here to use my points calculator.
4 – Bring your paperwork
Acquiring a mortgage loan requires a lot of paperwork, so you should spend some time getting your documentation together. Click here to preview general questions you'll have to answer on a loan app.