Do you wish to finance a home?
A lot of buyers believe applying for a mortgage loan is one of the more distressing parts of buying a house, but it doesn't have to be.
Being connected to a lot of lending companies in San Diego has helped me realize a few things that will make the loan application process easy.
1 – Assemble a list of questions about your loan program
If you find that you don't thoroughly realize the pros and cons of the different loan programs, be sure you bring a list of questions.
I or one of my lenders will be able to assist you with understanding the advantages and disadvantages of each program, because it's hard to understand the characteristics of both fixed and adjustable rate mortgages.
2 – Decide when you want to lock
By locking in the interest rate, the mortgage lender is committing to the interest rates for the loan – normally at the time the loan application is sent in.
By floating the rate, you can lock the rate anytime between the day you apply for your loan and closing. Buyers who decide to float think interest rates will drop 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 decrease your rate
Typically you can elect 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 closing.
To determine if buying points is the best option for you, click here to use our points calculator.
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 common loan documentation.