Are you financing your home in Troy? Big Bear Real Estate can help.
A lot of people believe applying for a mortgage loan is one of the most distressing elements of purchasing a house, but it doesn't have to be.
I have a close relationship with some lending companies in the Troy area, and they've helped me recognize a few things that make the process of applying for a loan a snap.
1 – Make a list of questions regarding your loan program
If you find that you do not completely comprehend the pros and cons of the different loan programs, make sure to bring a list of questions.
I or one of my lenders can help you understand the advantages and disadvantages of each program, because it can be a challenge to know the differences between fixed and adjustable rate mortgages.
2 – Determine when to lock
When you lock in the rate, a mortgage lender is sure to commit to the interest rates for the loan – often at the time the loan application is submitted.
By floating the rate, you can lock the rate at any time between application and closing. Those who opt to float presume the interest rates will drop 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 lower your rate
Oftentimes you can opt to pay additional points to lower the rate of your loan. Every point is 1 percent of the 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 the best option for you.
4 – Gather your paperwork
Obtaining a 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.