Looking to finance your new home in Austin? John Horton Realty can help.
Applying for the loan is one of the most stressful elements of buying a home, but it doesn't have to be.
I have a close relationship with some mortgage lenders in the Austin area, and they've helped me understand a few things that will make the process of applying for a loan very easy.
1 – Assemble a list of questions about your loan program
If you don't completely realize the pros and cons of all the different loan programs, be sure you have a list of questions with you.
I or one of my lender contacts will be able to assist you in understanding the advantages and disadvantages of each program, because it can be hard to understand the distinctions between fixed and adjustable rate mortgages.
2 – Determine when you want to lock
When you lock in an interest rate, the lender is sure to keep to the interest rates for the loan – commonly at the time the loan application is sent in.
By floating the rate, you can lock the rate at any time between the day of your loan application and issuance of closing documents. Those who decide 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 reduce your interest rate
Generally you can opt to pay additional points to lower the interest rate of your mortgage loan. Each point is 1 percent of the loan and is payable in cash at closing.
If you're uncertain if purchasing points is right for you, click here to use our points calculator.
4 – Gather your paperwork
Getting a mortgage loan requires a lot of paperwork, so you should spend some time getting all your documentation together. Click here to get a list of typical loan documentation.