Applying for your new home loan

Applying for the loan is one of the most troublesome aspects of purchasing a home, but it doesn't have to be. I'm pretty close to several lending companies in Davenport, and they've helped me realize a few things that make the process of applying for a loan much easier.

1 – Create a list of questions about your loan program

Be sure you have a list of questions if you find that you don't totally understand the pros and cons of the various programs. I or one of my lender contacts can assist you in understanding the advantages and disadvantages of each program, because it is hard to know the characteristics of both fixed and adjustable rate mortgages.

2 – Determine when you want to lock

By locking in the interest rate, your mortgage lender is keeping to the interest rates for the loan – most often at the time the loan application is sent in. By floating the rate, you can lock the rate at any time between the day of your loan application and issuance of closing documents. Those who opt to float believe that interest rates will fall in the near future. Click here to see the outlook for the next 90 days of interest rates.

3 – Determine if you want to pay additional points to decrease your interest rate

Oftentimes you can elect 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 determine if you should purchase points, click here to use our points calculator.

4 – Gather your paperwork

Obtaining a mortgage loan requires a lot of paperwork, so you should take some time to get your documentation together. Click here to get a list of general loan documentation.

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