Are you going to finance a home?
When buying a home, applying for the mortgage loan is a very exasperating event for a lot of people, but it doesn't have to be.
I have a close relationship with some mortgage lenders in the Sherman Oaks area, and they've helped me recognize some things that can make the process of applying for a loan easy.
1 – Assemble a list of questions regarding your loan program
Make sure to bring a list of questions if you don't fully understand the pros and cons of all the different programs.
I or one of my lender contacts will assist you in understanding the advantages and disadvantages of each program, because it's a challenge to understand the characteristics of both fixed and adjustable rate mortgages.
2 – Decide when you want to lock
When you lock in the rate, a mortgage lender is guaranteed to hold to the mortgage interest rates for the loan – most often 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 issuance of closing documents. Those who choose to float conclude 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 rate of your loan. Each 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. It will assist you in deciding if purchasing points is right for you.
4 – Compile your paperwork
Obtaining a loan requires lots of paperwork, so you should take some time to get all your documents together. Click here for a list of general loan documentation.