Thinking of financing a new home?
Most people believe applying for a mortgage loan is one of the more exasperating parts of buying a home, but it doesn't have to be.
I'm very well-connected with some lending companies in Phoenix, and they've helped me understand a few things that will make the process of applying for a loan a breeze.
1 – Compile a list of questions regarding your loan program
Make sure you bring a list of questions with you if you find that you do not fully comprehend the ins and outs of the various programs.
I or one of my lenders will be able to help you understand the advantages and disadvantages of each one, because it is a challenge to understand the differences between both fixed and adjustable rate mortgages.
2 – Determine when you want to lock
Locking in the interest rate denotes that your lender keeps to the mortgage interest rates for the loan – normally at the time the loan application is received.
By floating the rate, you can lock the rate anytime between the day you apply for your loan and the issuing of closing documents. Those who prefer to float presume interest rates will plunge 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 loan, you will pay for them in cash at closing. Each point is 1 percent of the loan.
Click here to use our points calculator. It will assist you in determining if buying points is right for you.
4 – Compile your paperwork
Acquiring a mortgage loan requires lots of paperwork, so you should spend some time getting all your documentation together. Click here for a list of general loan documentation.