For a lot of people, applying for a loan is one of the more troublesome parts of buying a home. But it doesn''t have to be. I have close relationships with many lenders in Wayne and Oakland County, and they''ve helped me learn a few things that make the loan application process pretty simple.
1 Organize a list of questions about your loan programMake sure you have a list of questions with you if you don''t perfectly comprehend the ins and outs of the different programs. It''s a challenge to understand the differences between fixed and adjustable rate mortgages. I or one of my trusted lenders will be able to assist you in understanding the advantages and disadvantages of each program.
2 Decide when to lockWhen you lock in an interest rate, your lender is guaranteed to commit to the interest rates for the loan ? usually at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the day of your loan application and the issuing of closing documents. Buyers who opt to float presume that interest rates will dip 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 rateIf you elect to pay additional points to lower the interest rate of your loan, you''ll pay for them in cash at closing. Every point is 1 percent of the mortgage loan.
4 Bring your paperwork
Obtaining a mortgage loan requires lots of paperwork, so you should take some time to get your documents together.
Please give me a call with any of your mortgage questions and needs. I''ll take you through the process and assist you with making a sound decision on the product and loan that best fits your needs.
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