Applying for a loan

Applying for financing can be one of the most distressing aspects of purchasing a home for a buyer, but it doesn't have to be. I'm pretty connected to various lenders in Greenfield, and they've helped me recognize some things that can make the loan application process uncomplicated.

1 – Create a list of questions about your loan program

Be sure you have a list of questions with you if you find that you don't entirely comprehend the ins and outs of all the different loan programs. I or one of my lender contacts will help you understand the advantages and disadvantages of each one, because it can be a challenge to understand the characteristics of both fixed and adjustable rate mortgages.

2 – Decide when to lock

When you lock in a rate, a mortgage lender is guaranteed to keep to the mortgage interest rates for the loan – usually 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 believe that interest rates will fall 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 lower your interest rate

If you decide to pay additional points to lower the interest rate of your mortgage loan, you'll do so by paying for them in cash at the time of closing. Every point is 1 percent of the mortgage loan. Click here to use our points calculator. It will assist you in determining if buying points is right for you.

4 – Bring your paperwork

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