Applying for a new home loan with the help of John Horton Realty
Most people believe that applying for financing is one of the more demanding elements of purchasing a house, but it doesn't have to be.
I'm well-connected to various lenders in the Austin area, and they've helped me understand some things that can make the process of applying for a loan effortless.
1 – Compose a list of questions regarding your loan program
If you don't totally comprehend the advantages and disadvantages of all the different programs, be sure you bring a list of questions.
It is often a challenge to understand the characteristics of both fixed and adjustable rate mortgages. I or one of my lenders will assist you with understanding the advantages and disadvantages of each program.
2 – Decide when to lock
By locking in the rate, the mortgage lender is keeping to the interest rates for the loan – normally at the time the loan application is sent in.
By floating the rate, you can lock the rate anytime between application and issuance of closing documents. Those who choose to float think 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 reduce your rate
Typically you can choose to pay additional points to lower the interest rate of your mortgage loan. Each point is 1 percent of the mortgage loan and is payable in cash at closing.
Click here to use our points calculator. It will help you determine if purchasing points is right for you.
4 – Compile your paperwork
Getting a mortgage loan requires a lot of paperwork, so you should take some time to get your documents together. Click here for a list of general loan documentation.