Applying for your home loan
For a lot of people, applying for mortgage financing can be one of the most demanding aspects of purchasing a house, but it doesn't have to be.
I have a close relationship with some lending companies in Cornelius, and they've helped me understand some things that make the process of applying for a loan a breeze.
1 – Put together a list of questions about your loan program
Be sure to bring a list of questions with you if you do not perfectly comprehend the pros and cons of all the various loan programs.
At times, it can be hard to understand the differences between fixed and adjustable rate mortgages. I or one of my trusted lenders will assist you with understanding the advantages and disadvantages of each program.
2 – Determine when you want to lock
Locking in an interest rate denotes that your lender guarantees the interest rates for the loan – ordinarily at the time the loan application is presented.
By floating the rate, you can lock the rate anytime between the day you apply for your loan and closing. Buyers who opt to float conclude that interest rates will plunge 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 reduce your interest rate
Generally you can choose to pay additional points to lower the interest rate of your loan. Every point is 1 percent of the mortgage loan and is payable in cash at closing.
If you're uncertain if purchasing points is right for you, click here to use our points calculator.
4 – Bring your paperwork
Acquiring a loan requires a lot of paperwork, so you should spend some time getting all your documentation together. Click here to get a list of typical loan documentation.