Applying for your loan

Most buyers believe applying for the mortgage loan is one of the more demanding aspects of buying a home, but it doesn't have to be. Being connected with many lending companies in the Prairieville area has helped me understand a few things that make the process of applying for a loan much easier.

1 – Organize a list of questions about your loan program

Make sure to bring a list of questions if you find that you do not completely understand the advantages and disadvantages of all the various programs. I or one of my lender contacts can assist you in understanding the advantages and disadvantages of each program, because it is hard to know the characteristics of both fixed and adjustable rate mortgages.

2 – Decide when to lock

By locking in an interest rate, your lender is committing to the mortgage interest rates for the loan – usually at the time the loan application is sent in. By floating the rate, you can lock the rate anytime between application and closing. Buyers who choose to float think the 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 decrease your interest rate

When you choose to pay additional points to lower the interest rate of your loan, you'll pay for them in cash at the time of closing. Every point is 1 percent of the mortgage loan. If you're unsure if buying points is the best option for you, click here to use our points calculator.

4 – Gather your paperwork

Obtaining a loan requires a lot of paperwork, so you should spend some time getting all your documents together. Click here to get a list of common loan documentation.