Thinking about financing a new home in Troy? Big Bear Real Estate can help.
Applying for the loan is one of the most distressing aspects of purchasing a house for a buyer, but it doesn't have to be.
I have a close business relationship with various lending companies in Troy, and they've helped me understand a few things that will make the process of applying for a loan a breeze.
1 – Create a list of questions regarding your loan program
If you don't completely comprehend the ins and outs of all the different loan programs, make sure to bring a list of questions with you.
It can be hard to know the distinctions between fixed and adjustable rate mortgages. I or one of my trusted lenders can help you understand the advantages and disadvantages of each one.
2 – Determine when to lock
By locking in the interest rate, a mortgage lender is guaranteeing the interest rates for the loan – often at the time the loan application is received.
By floating the rate, you can lock the rate at any time between the day of your loan application and issuance of closing documents. Those who prefer to float conclude that the 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 lower your interest rate
When you decide to pay additional points to lower the rate of your loan, you will do so by paying for them in cash at closing. Each point is 1 percent of the mortgage loan.
If you're undecided as to whether or not purchasing points is right for you, click here to use our points calculator.
4 – Bring your paperwork
Getting a loan requires a lot of paperwork, so you should spend some time getting your documentation together. Click here to get a list of common loan documentation.