Thinking about financing a home?
Many people think applying for a mortgage loan is one of the most distressing aspects of buying a house, but it doesn't have to be.
Having connections with some lending companies in Alexandria has helped me recognize a few things that make the process of applying for a loan very easy.
1 – Organize a list of questions regarding your loan program
Make sure to have a list of questions with you if you find that you do not completely comprehend the ins and outs of all the different loan programs.
It is hard to understand the differences between both fixed and adjustable rate mortgages. I or one of my lender contacts will help you understand the advantages and disadvantages of both programs.
2 – Determine when to lock
When you lock in the rate, your lender is guaranteed to hold to the interest rates for the loan – ordinarily at the time the loan application is presented.
By floating the rate, you can lock the rate at any time between application and closing. Buyers who elect to float think that the interest rates will dip 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
Generally you can opt to pay additional points to lower the interest rate of your mortgage loan. Every point is 1 percent of the loan and is payable in cash at closing.
To determine if purchasing points is right for you, click here to use our points calculator.
4 – Bring your paperwork
Getting a mortgage loan requires a lot of paperwork, so you should spend some time getting your documentation together. Click here for a list of common loan documentation.