Are you thinking about financing your new home? Brian L. A. Wess can help.
When buying a home, applying for the mortgage loan is a very stressful event for most people, but it doesn't have to be.
I have a close business relationship with various lenders in the Colorado Springs area, and they've helped me recognize some things that can make the loan application process a breeze.
1 – Compile a list of questions about your loan program
If you find that you do not entirely realize 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 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.
2 – Determine when you want to lock
Locking in a rate denotes that the mortgage lender commits to the mortgage interest rates for the loan – ordinarily 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 the issuing of closing documents. Those who choose to float presume 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 rate
Typically you can decide to pay additional points to lower the rate of your mortgage loan. Each point is 1 percent of the loan and is payable in cash at the time of closing.
To decide if buying points is right for you, click here to use our points calculator.
4 – Compile your paperwork
Getting a loan requires lots of paperwork, so you should take some time to get all your documents together. Click here for a list of common loan documentation.