Are you financing a new home? Big Bear Real Estate can help.

When purchasing a home, applying for a mortgage loan is exasperating for a lot of people, but it doesn't have to be. I'm very connected to some mortgage lenders in the Troy area, and they've helped me realize a few things that can make the process of applying for a loan much easier.

1 – Compose a list of questions regarding your loan program

Be sure you bring a list of questions with you if you find that you do not perfectly realize the ins and outs of the various loan programs. It is often hard to know the distinctions between both fixed and adjustable rate mortgages. I or one of my trusted lenders will help you understand the advantages and disadvantages of both.

2 – Decide when to lock

When you lock in a rate, a lender is guaranteed to keep 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 anytime between the day you apply for your loan and the issuing of closing documents. Buyers who decide to float conclude that 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 decrease your interest rate

If you decide to pay additional points to lower the interest rate of your loan, you will pay for them in cash at closing. Every point is 1 percent of the mortgage loan. If you're unsure if purchasing points is the best option for you, click here to use our points calculator.

4 – Compile your paperwork

Obtaining a mortgage loan requires lots of paperwork, so you should take some time to get all your documentation together. Click here to get a list of normal loan documentation.

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