Applying for a loan

Applying for financing is one of the most troublesome elements of purchasing a house for a buyer, but it doesn't have to be. I'm pretty well-connected with some mortgage lenders in the Troy area, and they've helped me learn a few things that can make the process of applying for a loan very manageable.

1 – Compose a list of questions regarding your loan program

If you do not thoroughly comprehend the ins and outs of all the different programs, be sure you have a list of questions. I or one of my lenders will be able to assist you in understanding the advantages and disadvantages of each one, because it's a challenge to know the characteristics of both fixed and adjustable rate mortgages.

2 – Determine when to lock

Locking in the rate designates that a lender commits to the interest rates for the loan – normally at the time the loan application is sent in. By floating the rate, you can lock the rate anytime between the loan application day and issuance of closing documents. Those who elect to float believe 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 decrease your rate

If you choose to pay additional points to lower the rate of your mortgage loan, you will pay for them in cash at closing. Every point is 1 percent of the mortgage loan. Click here to use our points calculator. It will help you decide if buying points is right for you.

4 – Gather your paperwork

Acquiring a mortgage 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.

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