Applying for a home loan

When purchasing a home, applying for a loan is exasperating for a lot of people, but it doesn't have to be. I have a close relationship with several lenders in the Stuart area, and they've helped me understand some things that will make the loan application process pretty simple.

1 – Organize a list of questions regarding your loan program

If you find that you do not fully realize the pros and cons of all the various programs, make sure to bring a list of questions. It can be a challenge understanding the differences between fixed and adjustable rate mortgages. I or one of my lenders will be able to assist you with understanding the advantages and disadvantages of both programs.

2 – Determine when you want to lock

Locking in a rate means that your mortgage lender guarantees the mortgage interest rates for the loan – generally at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between application and at the time of closing. Buyers who choose to float think interest rates will decline 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 lower your rate

Generally you can choose 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 closing. Click here to use our points calculator. This tool will assist you in deciding if purchasing points is the best option for you.

4 – Compile your paperwork

Obtaining a mortgage loan requires lots of paperwork, so you should take some time to get all your documentation together. Click here for a list of common loan documentation.