Thinking about financing your new home? Issac W. Harper Real Estate Broker/RealtorĀ© can help.

When purchasing a home, applying for a mortgage loan is a very stressful event for most people, but it doesn't have to be. I have a close relationship with many lending companies in Austin, and they've helped me realize some things that make the loan application process a breeze.

1 – Make a list of questions about your loan program

Make sure to bring a list of questions if you do not completely realize the ins and outs of all the different programs. I or one of my lender contacts will be able to help you understand the advantages and disadvantages of both programs, because it's a challenge to understand the characteristics of both fixed and adjustable rate mortgages.

2 – Decide when you want to lock

By locking in the rate, your lender is holding to the interest rates for the loan – typically at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between the day you apply for your loan and closing. Those who opt to float conclude that the interest rates will drop 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 rate

Normally you can opt to pay additional points to lower the rate of your loan. Each point is 1 percent of the mortgage loan and is payable in cash at closing. Click here to use our points calculator. This tool will assist you in deciding if buying points is the best option for you.

4 – Compile your paperwork

Obtaining a mortgage loan requires a lot of paperwork, so you should take some time to get all your documentation together. Click here for a list of normal loan documentation.

Issac W. Harper Real Estate Broker/RealtorĀ©

P.O. Box 143683
Austin, TX 78714-3683