Applying for your home loan
Most people think that applying for the loan is one of the more stressful aspects of purchasing a home, but it doesn't have to be.
Having connections to a lot of mortgage lenders in Bronx has helped me recognize a few things that will make the loan application process much easier.
1 – Compose a list of questions regarding your loan program
Be sure to have a list of questions with you if you don't completely understand the advantages and disadvantages of the different loan programs.
It's a challenge understanding the characteristics of fixed and adjustable rate mortgages. I or one of my lenders will help you understand the advantages and disadvantages of both.
2 – Decide when you want to lock
When you lock in the interest rate, it signifies that a mortgage lender guarantees the interest rates for the loan – commonly at the time the loan application is presented.
By floating the rate, you can lock the rate at any time between the day you apply for your loan and at the time of closing. Those who prefer to float conclude interest rates will decline 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 lower your interest rate
When you choose to pay additional points to lower the rate of your loan, you'll do so by paying for them in cash at the time of closing. Each point is 1 percent of the loan.
To decide if you should purchase points, click here to use our points calculator.
4 – Compile your paperwork
Getting a mortgage loan requires lots of paperwork, so you should take some time to get your documentation together. Click here to get a list of normal loan documentation.