Applying for your new home loan
For many people, applying for a mortgage loan can be one of the more exasperating elements of purchasing a house, but it doesn't have to be.
I'm very connected with many lending companies in Colorado Springs, and they've helped me understand some things that make the process of applying for a loan easy.
1 – Create a list of questions regarding your loan program
Be sure you bring a list of questions with you if you find that you do not entirely realize the ins and outs of all the different loan programs.
It's a challenge to understand the characteristics of both fixed and adjustable rate mortgages. I or one of my lenders will assist you in understanding the advantages and disadvantages of each one.
2 – Determine when you want to lock
Locking in the interest rate signifies that your mortgage lender holds to the interest rates for the loan – usually at the time the loan application is presented.
By floating the rate, you can lock the rate anytime between the day you apply for the loan and closing. Those who opt to float conclude the interest rates will dip 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 interest rate
Oftentimes you can decide to pay additional points to lower the rate of your mortgage loan. Every point is 1 percent of the loan and is payable in cash at closing.
Click here to use our points calculator. It will help you decide if buying points is the best option for you.
4 – Bring 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 general loan documentation.