Do you wish to finance a new home?
Applying for the loan can be one of the most demanding elements of purchasing a home, but it doesn't have to be.
I have a close relationship with a lot of lenders in the Colorado Springs area, and they've helped me recognize some things that make the loan application process uncomplicated.
1 – Compose a list of questions about your loan program
If you find that you do not perfectly comprehend the ins and outs of all the different programs, make sure to have a list of questions.
At times, it can be a challenge to know the distinctions between both fixed and adjustable rate mortgages. I or one of my lender contacts will be able to assist you with understanding the advantages and disadvantages of both.
2 – Determine when to lock
Locking in indicates that your mortgage lender keeps to the interest rates for the loan – typically at the time the loan application is presented.
By floating the rate, you can lock the rate anytime between the loan application day and the issuing of closing documents. Buyers who opt to float conclude 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 reduce your rate
When you opt to pay additional points to lower the interest rate of your loan, you'll pay for them in cash at the time of closing. Every point is 1 percent of the loan.
If you're uncertain as to whether or not purchasing points is right for you, click here to use our points calculator.
4 – Gather your paperwork
Obtaining a mortgage loan requires a lot of paperwork, so you should take some time to get all your documents together. Click here to get a list of typical loan documentation.