Applying for a home loan
Applying for a loan is one of the most exasperating parts of purchasing a home, but it doesn't have to be.
I have a close relationship with several lenders in the Fort Lauderdale area, and they've helped me recognize a few things that make the loan application process easy.
1 – Put together a list of questions about your loan program
If you find that you do not fully comprehend the advantages and disadvantages of the different loan programs, be sure to bring a list of questions.
I or one of my lender contacts can help you understand the advantages and disadvantages of both programs, because it's a challenge to understand the distinctions between fixed and adjustable rate mortgages.
2 – Determine when to lock
Locking in means that a lender holds to the mortgage interest rates for the loan – most often 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. Those who choose to float think that the 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 reduce your interest rate
Generally you can decide to pay additional points to lower the interest rate of your mortgage loan. Every 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. This tool will help you decide if buying points is right for you.
4 – Compile your paperwork
Acquiring a mortgage loan requires lots of paperwork, so you should take some time to get your documents together. Click here for a list of typical loan documentation.