Applying for your home loan

When purchasing a home, applying for financing is a stressful event for most people, but it doesn't have to be. I'm very connected with various lending companies in the Prairieville area, and they've helped me understand a few things that can make the loan application process effortless.

1 – Compose a list of questions about your loan program

Make sure to bring a list of questions if you don't entirely comprehend the ins and outs of all the various loan programs. I or one of my lenders will help you understand the advantages and disadvantages of both programs, because it can be hard to know the distinctions between both fixed and adjustable rate mortgages.

2 – Decide when you want to lock

Locking in the rate denotes that your lender holds to the mortgage interest rates for the loan – commonly at the time the loan application is received. By floating the rate, you can lock the rate at any time between the day you apply for the loan and the issuing of closing documents. Buyers who opt to float presume that interest rates will plunge 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

If you decide to pay additional points to lower the interest rate of your mortgage loan, you will do so by paying for them in cash at closing. Each point is 1 percent of the mortgage loan. To decide if you should purchase points, click here to use our points calculator.

4 – Bring your paperwork

Getting a mortgage loan requires lots of paperwork, so you should spend some time getting all your documents together. Click here for a list of general loan documentation.