Applying for a new home loan with the help of Hanson Real Estate, Inc
When buying a home, the loan application is demanding for a lot of people, but it doesn't have to be. I have close business relationships with some reputable lending companies in the Escondido area, and they've helped me understand some things that can make the process of applying for a loan uncomplicated.
1 – Put together a list of questions about your loan program
If you find that you don't thoroughly understand the pros and cons of the various programs, be sure you have a list of questions. One of my lenders or I can assist you in understanding the advantages and disadvantages of each program, because it's a challenge to know the characteristics of both fixed and adjustable rate mortgages.
2 – Determine when you want to lock
By locking in an interest rate, a mortgage lender is guaranteeing the mortgage interest rates for the loan – normally at the time the loan application is received. By floating the rate, you can lock the rate at any time between the loan application day and issuance of closing documents. Buyers who elect to float presume that 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 lower your rate
When you elect to pay additional points to lower the interest rate of your loan, you'll pay for them in cash at the time of closing. Every point is 1 percent of the loan. If you're undecided on whether or not purchasing points is right for you, click here to use my points calculator.
4 – Bring your paperwork
Obtaining a mortgage loan requires a lot of paperwork, so you should spend some time getting your documents together. Click here to see normal questions you'll have to answer on a loan app.