Thinking of financing a new home in Lewisburg? Grover Collins Real Estate & Auction Inc. can help.
For many people, applying for a mortgage loan is one of the more stressful elements of purchasing a home, but it doesn't have to be.
Having connections with some mortgage lenders in Lewisburg has helped me recognize some things that make the process of applying for a loan pretty simple.
1 – Organize a list of questions regarding your loan program
If you do not fully realize the advantages and disadvantages of the different programs, be sure to have a list of questions.
I or one of my lender contacts can assist you in understanding the advantages and disadvantages of each program, because it's hard to understand the characteristics of both fixed and adjustable rate mortgages.
2 – Decide when to lock
By locking in an interest rate, a lender is keeping to the mortgage interest rates for the loan – generally at the time the loan application is sent in.
By floating the rate, you can lock the rate at any time between application and issuance of closing documents. Those who decide to float presume that 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 decrease your interest rate
If you elect to pay additional points to lower the rate of your mortgage loan, you'll pay for them in cash at the time of closing. Each point is 1 percent of the loan.
If you're not sure if purchasing points is right for you, click here to use our points calculator.
4 – Gather your paperwork
Getting a mortgage loan requires lots of paperwork, so you should spend some time getting your documentation together. Click here to get a list of typical loan documentation.