Are you financing your home?
Applying for a loan can be one of the most demanding parts of purchasing a home for a buyer, but it doesn't have to be.
I'm pretty close with several mortgage lenders in Sherman Oaks, and they've helped me learn a few things that make the process of applying for a loan a breeze.
1 – Organize a list of questions regarding your loan program
If you find that you do not perfectly realize the advantages and disadvantages of the different loan programs, make sure you bring a list of questions with you.
It is often a challenge to know the differences between both fixed and adjustable rate mortgages. I or one of my lenders will be able to assist you in understanding the advantages and disadvantages of each.
2 – Determine when to lock
By locking in an interest rate, your lender is guaranteeing the mortgage interest rates for the loan – commonly at the time the loan application is submitted.
By floating the rate, you can lock the rate anytime between application and at the time of closing. Those who choose to float presume that interest rates will plunge 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 decrease your rate
Normally you can elect to pay additional points to lower the interest rate of your mortgage loan. Each point is 1 percent of the mortgage loan and is payable in cash at closing.
If you're undecided on whether or not buying points is right for you, click here to use our points calculator.
4 – Gather your paperwork
Getting a mortgage loan requires a lot of paperwork, so you should take some time to get all your documents together. Click here for a list of typical loan documentation.