Applying for your new home loan with help from Lake Country Real Estate, Inc.
When buying a home, applying for financing is troublesome for many people, but it doesn't have to be.
Being connected to some mortgage lenders in the Auburn area has helped me realize some things that can make the loan application process pretty simple.
1 – Compose a list of questions about your loan program
If you find that you don't completely understand the pros and cons of all the various programs, make sure to bring a list of questions.
I or one of my lender contacts can assist you with understanding the advantages and disadvantages of both programs, because it is a challenge to know the differences between fixed and adjustable rate mortgages.
2 – Determine when you want to lock
Locking in the rate designates that the mortgage lender holds to the mortgage interest rates for the loan – usually at the time the loan application is presented.
By floating the rate, you can lock the rate anytime between the day of your loan application and closing. Buyers who opt to float think that the interest rates will plunge 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 reduce your interest rate
When you decide to pay additional points to lower the interest rate of your loan, you'll do so by paying for them in cash at closing. Every point is 1 percent of the loan.
If you're undecided as to whether or not buying points is right for you, click here to use our points calculator.
4 – Gather your paperwork
Obtaining a loan requires lots of paperwork, so you should take some time to get all your documentation together. Click here to get a list of general loan documentation.