Applying for your home loan with help from Big Bear Real Estate

A lot of people think applying for the loan is one of the most demanding parts of buying a home, but it doesn't have to be. I'm pretty connected to various lenders in the Troy area, and they've helped me understand a few things that will make the process of applying for a loan very manageable.

1 – Compile a list of questions regarding your loan program

Make sure to bring a list of questions if you find that you do not perfectly understand the advantages and disadvantages of all the various programs. Oftentimes, it can be a challenge to know the characteristics of fixed and adjustable rate mortgages. I or one of my lenders can assist you with understanding the advantages and disadvantages of each.

2 – Determine when to lock

When you lock in the rate, your lender is guaranteed to keep to the mortgage interest rates for the loan – commonly at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between the day you apply for your loan and the issuing of closing documents. Those who prefer to float conclude interest rates will plunge 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 reduce your interest rate

Typically you can decide to pay additional points to lower the rate of your loan. Each point is 1 percent of the loan and is payable in cash at closing. If you're unsure if buying points is right for you, click here to use our points calculator.

4 – Compile your paperwork

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

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