Looking to finance your home? Brian L. A. Wess can help.
Many people believe applying for the loan is one of the more troublesome elements of purchasing a home, but it doesn't have to be.
I have a close relationship with some lending companies in the Colorado Springs area, and they've helped me recognize a few things that will make the process of applying for a loan pretty simple.
1 – Assemble a list of questions regarding your loan program
Make sure to have a list of questions if you find that you do not entirely realize the pros and cons of the different programs.
I or one of my trusted lenders will be able to help you understand the advantages and disadvantages of each one, because it can be a challenge to understand the distinctions between fixed and adjustable rate mortgages.
2 – Determine when you want to lock
When you lock in an interest rate, your mortgage lender is sure to commit to the interest rates for the loan – commonly at the time the loan application is presented.
By floating the rate, you can lock the rate anytime between the day you apply for your loan and the issuing of closing documents. Buyers who decide to float believe that interest rates will drop 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 interest rate
Generally you can decide to pay additional points to lower the interest rate of your mortgage loan. Each point is 1 percent of the loan and is payable in cash at closing.
If you're unsure 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 lots of paperwork, so you should take some time to get your documents together. Click here for a list of typical loan documentation.