Looking to finance your new home in Troy? Big Bear Real Estate can help.
Many people believe applying for financing is one of the more stressful parts of purchasing a house, but it doesn't have to be.
I'm very well-connected with a lot of lending companies in the Troy area, and they've helped me recognize some things that will make the process of applying for a loan effortless.
1 – Put together a list of questions regarding your loan program
Make sure you have a list of questions if you do not completely realize the ins and outs of the different loan programs.
Oftentimes, it can be a challenge to know the differences between fixed and adjustable rate mortgages. I or one of my lender contacts will assist you with understanding the advantages and disadvantages of each program.
2 – Decide when you want to lock
Locking in designates that the mortgage lender commits to the mortgage interest rates for the loan – often at the time the loan application is presented.
By floating the rate, you can lock the rate at any time between the day of your loan application and the issuing of closing documents. Buyers who decide to float presume interest rates will drop 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 decrease your interest rate
Oftentimes you can opt 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 the time of closing.
Click here to use our points calculator. This tool will assist you in determining if buying points is right for you.
4 – Gather your paperwork
Obtaining a mortgage loan requires a lot of paperwork, so you should spend some time getting all your documents together. Click here to get a list of normal loan documentation.