Thinking of financing a new home? Elite Realty Team LLC can help.
When purchasing a home, applying for a loan is very distressing for most people, but it doesn't have to be.
Having connections to a lot of lenders in the Edmond area has helped me understand some things that make the process of applying for a loan very easy.
1 – Create a list of questions about your loan program
If you don't fully realize the pros and cons of the various loan programs, make sure you have a list of questions with you.
It is often a challenge to know the characteristics of both fixed and adjustable rate mortgages. I or one of my lenders will assist you in understanding the advantages and disadvantages of both.
2 – Decide when to lock
When you lock in an interest rate, the mortgage lender is guaranteed to commit to the mortgage interest rates for the loan – usually at the time the loan application is sent in.
By floating the rate, you can lock the rate at any time between application and issuance of closing documents. Those who decide to float believe 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 reduce your rate
If you opt to pay additional points to lower the rate of your mortgage loan, you will pay for them in cash at closing. Each point is 1 percent of the loan.
Click here to use our points calculator. It will help you determine if buying points is right for you.
4 – Gather your paperwork
Obtaining a mortgage loan requires lots of paperwork, so you should spend some time getting all your documents together. Click here to get a list of typical loan documentation.