Applying for a loan with the help of Issac W. Harper Real Estate Broker/Realtor©
Many people think applying for financing is one of the more troublesome aspects of purchasing a home, but it doesn't have to be.
Having connections with many lenders in the Austin area has helped me learn some things that can make the process of applying for a loan a breeze.
1 – Organize a list of questions about your loan program
Make sure to bring a list of questions with you if you do not thoroughly comprehend the pros and cons of all the various loan programs.
It's hard to understand the differences between fixed and adjustable rate mortgages. I or one of my lenders will assist you in understanding the advantages and disadvantages of each one.
2 – Decide when to lock
When you lock in the interest rate, your lender is guaranteed to commit to the interest rates for the loan – generally at the time the loan application is sent in.
By floating the rate, you can lock the rate anytime between the day you apply for the loan and issuance of closing documents. Those who prefer to float conclude the 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 opt to pay additional points to lower the interest rate of your loan, you will pay for them in cash at the time of closing. Each point is 1 percent of the mortgage loan.
Click here to use our points calculator. It will assist you with deciding if purchasing points is the best option for you.
4 – Compile your paperwork
Acquiring a loan requires a lot of paperwork, so you should spend some time getting your documents together. Click here to get a list of common loan documentation.