A lot of people think applying for financing is one of the more troublesome aspects of purchasing a house, but it doesn't have to be. I have a close relationship with many lending companies in Fall River, and they've helped me realize some things that can make the process of applying for a loan a snap.
If you find that you do not thoroughly comprehend the advantages and disadvantages of the various loan programs, make sure to have a list of questions. I or one of my lender contacts will be able to help you understand the advantages and disadvantages of each program, because it is a challenge to know the characteristics of fixed and adjustable rate mortgages.
Locking in an interest rate denotes that a mortgage lender keeps to the interest rates for the loan – often at the time the loan application is presented. 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 prefer to float believe the interest rates will dip in the near future. Click here to see the outlook for the next 90 days of interest rates.
If you opt to pay additional points to lower the rate of your loan, you will do so by paying for them in cash at the time of closing. Every point is 1 percent of the mortgage loan. Click here to use our points calculator. It will assist you in deciding if buying points is the best option for you.
Getting a mortgage loan requires a lot of paperwork, so you should spend some time getting all your documentation together. Click here to get a list of general loan documentation.