Applying for your new home loan with the help of RE/MAX Advantage
When buying a home, applying for the loan is very stressful for many people, but it doesn't have to be.
I'm pretty connected to several mortgage lenders in the Rice Lake area, and they've helped me recognize some things that make the loan application process easy.
1 – Compose a list of questions regarding your loan program
Be sure you bring a list of questions if you find that you don't fully understand the pros and cons of all the different programs.
It is a challenge to know the differences between both fixed and adjustable rate mortgages. I or one of my lender contacts will be able to assist you in understanding the advantages and disadvantages of each program.
2 – Decide when to lock
When you lock in the rate, your mortgage lender is sure to keep to the 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 day you apply for your loan and closing. Buyers who prefer to float believe the interest rates will plunge 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 interest rate
Normally you can decide to pay additional points to lower the rate of your 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. It will assist you with determining if purchasing points is right for you.
4 – Gather your paperwork
Getting a mortgage loan requires a lot of paperwork, so you should spend some time getting all your documentation together. Click here for a list of normal loan documentation.