Thinking of financing your new home?
When buying a home, applying for a mortgage loan is a stressful event for most people, but it doesn't have to be.
I have a close business relationship with various lending companies in the Fall River area, and they've helped me learn a few things that make the process of applying for a loan pretty simple.
1 – Put together a list of questions about your loan program
If you do not fully realize the pros and cons of the different loan programs, be sure you bring a list of questions.
I or one of my trusted lenders will assist you with understanding the advantages and disadvantages of each one, because it is hard to understand the differences between both fixed and adjustable rate mortgages.
2 – Determine when to lock
By locking in an interest rate, the lender is keeping to the interest rates for the loan – typically at the time the loan application is received.
By floating the rate, you can lock the rate anytime between the loan application day and the issuing of closing documents. Those who prefer to float think that interest rates will decline 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
When you opt to pay additional points to lower the rate of your mortgage loan, you'll do so by paying for them in cash at the time of closing. Each point is 1 percent of the loan.
Click here to use our points calculator. This tool will assist you in determining if purchasing points is the best option for you.
4 – Bring your paperwork
Getting a mortgage loan requires lots of paperwork, so you should spend some time getting your documentation together. Click here to get a list of typical loan documentation.