Thinking about financing your home?
When buying a home, applying for the loan is a demanding event for many people, but it doesn't have to be.
I have a close relationship with many lending companies in Orland Park, and they've helped me learn a few things that will make the process of applying for a loan uncomplicated.
1 – Put together a list of questions about your loan program
If you find that you do not thoroughly comprehend the pros and cons of all the various loan programs, make sure you bring a list of questions with you.
I or one of my lender contacts can help you understand the advantages and disadvantages of both programs, because it can be a challenge to know the characteristics of both fixed and adjustable rate mortgages.
2 – Decide when to lock
When you lock in an interest rate, a lender is guaranteed to keep to the mortgage interest rates for the loan – typically at the time the loan application is received.
By floating the rate, you can lock the rate at any time between the loan application day and issuance of closing documents. Those who decide to float presume that the interest rates will decline 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 decide to pay additional points to lower the rate of your mortgage loan. Each point is 1 percent of the loan and is payable in cash at closing.
Click here to use our points calculator. It will assist you in determining if purchasing points is the best option for you.
4 – Gather 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.