Looking to finance a new home?
For many people, applying for the loan can be one of the most exasperating parts of purchasing a home, but it doesn't have to be.
Having connections with a lot of lending companies in the Davenport area has helped me learn some things that can make the process of applying for a loan a snap.
1 – Compile a list of questions about your loan program
Be sure you have a list of questions if you don't perfectly comprehend the pros and cons of all the various programs.
It is often a challenge to know the distinctions between both fixed and adjustable rate mortgages. I or one of my trusted lenders can help you understand the advantages and disadvantages of each.
2 – Decide when to lock
By locking in the interest rate, a lender is guaranteeing the mortgage interest rates for the loan – often at the time the loan application is submitted.
By floating the rate, you can lock the rate anytime between the loan application day and the issuing of closing documents. Buyers who decide to float think that the interest rates will fall 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 reduce your rate
If you choose to pay additional points to lower the interest rate of your mortgage loan, you will pay for them in cash at closing. Each point is 1 percent of the mortgage loan.
To decide if you should buy points, click here to use our points calculator.
4 – Bring 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.