Are you financing your new home?
Applying for a mortgage loan can be one of the most stressful parts of buying a home for a buyer, but it doesn't have to be.
I'm familiar with several lenders in the Austin area, and they've helped me recognize a few things that can make the process of applying for a loan a snap.
1 – Make a list of questions about your loan program
Make sure to bring a list of questions if you find that you do not totally realize the advantages and disadvantages of all the different programs.
I or one of my lender contacts will help you understand the advantages and disadvantages of each program, because it can be a challenge to understand the characteristics of fixed and adjustable rate mortgages.
2 – Determine when you want to lock
When you lock in the rate, a mortgage lender is sure to hold 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 the loan application day and issuance of closing documents. Buyers who prefer to float believe interest rates will drop 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 decrease your rate
If you choose to pay additional points to lower the interest rate of your mortgage loan, you'll pay 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. This tool will help you determine if purchasing points is the best option for you.
4 – Bring your paperwork
Acquiring a loan requires lots of paperwork, so you should spend some time getting your documentation together. Click here for a list of general loan documentation.