Are you thinking of financing a home in Austin? Issac W. Harper Real Estate Broker/Realtor© can help.
Applying for a loan is one of the most troublesome aspects of buying a home, but it doesn't have to be.
I have a close business relationship with many mortgage lenders in Austin, and they've helped me recognize some things that can make the process of applying for a loan very easy.
1 – Compile a list of questions about your loan program
If you do not entirely realize the ins and outs of the various loan programs, be sure you bring a list of questions.
I or one of my lenders can assist you with understanding the advantages and disadvantages of each one, because it is hard to know the differences between fixed and adjustable rate mortgages.
2 – Determine when you want to lock
When you lock in the interest rate, a mortgage lender is sure to keep to the interest rates for the loan – typically at the time the loan application is sent in.
By floating the rate, you can lock the rate at any time between the day you apply for your loan and at the time of closing. Those who decide to float conclude interest rates will fall 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 reduce your rate
Typically you can opt to pay additional points to lower the interest rate of your loan. Every point is 1 percent of the loan and is payable in cash at closing.
If you're uncertain if buying points is the best option for you, click here to use our points calculator.
4 – Gather your paperwork
Obtaining a loan requires lots of paperwork, so you should spend some time getting all your documentation together. Click here for a list of general loan documentation.