Are you thinking of financing your new home? NE TEXAS REALTY GROUP can help.
Most people believe that applying for a mortgage loan is one of the more distressing aspects of buying a house, but it doesn't have to be.
I have a close business relationship with some lenders in the Paris area, and they've helped me learn a few things that make the process of applying for a loan much easier.
1 – Make a list of questions about your loan program
If you do not entirely realize the pros and cons of all the different programs, make sure to have a list of questions.
I or one of my lenders can help you understand the advantages and disadvantages of each one, because it is a challenge to understand the distinctions between fixed and adjustable rate mortgages.
2 – Determine when to lock
By locking in an interest rate, the lender is committing to the interest rates for the loan – typically at the time the loan application is submitted.
By floating the rate, you can lock the rate at any time between the day of your loan application and issuance of closing documents. Buyers who choose to float believe 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
When you decide to pay additional points to lower the interest rate of your mortgage loan, you'll pay for them in cash at closing. Each point is 1 percent of the loan.
Click here to use our points calculator. This tool will help you determine if buying points is the best option for you.
4 – Gather your paperwork
Acquiring a loan requires lots of paperwork, so you should take some time to get all your documents together. Click here to get a list of general loan documentation.