Do you wish to finance your home?
When buying a home, applying for a loan is a very stressful event for a lot of people, but it doesn't have to be.
I'm pretty connected with some mortgage lenders in Davenport, and they've helped me learn some things that make the loan application process easy.
1 – Compose a list of questions about your loan program
Be sure to have a list of questions if you find that you don't completely comprehend the pros and cons of the different loan programs.
It can be hard to know the differences between fixed and adjustable rate mortgages. I or one of my lenders will assist you in understanding the advantages and disadvantages of both.
2 – Determine when to lock
When you lock in an interest rate, it denotes that a mortgage lender guarantees the interest rates for the loan – often at the time the loan application is received.
By floating the rate, you can lock the rate at any time between the day you apply for your loan and issuance of closing documents. Buyers who choose to float presume 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 decrease your rate
Usually you can elect to pay additional points to lower the interest rate of your mortgage loan. Every point is 1 percent of the mortgage loan and is payable in cash at the time of closing.
Click here to use our points calculator. This tool will assist you with determining if purchasing points is right for you.
4 – Gather your paperwork
Acquiring a loan requires lots of paperwork, so you should spend some time getting your documents together. Click here to get a list of normal loan documentation.