Thinking of financing your new home?

Applying for a loan can be one of the most stressful elements of buying a home, but it doesn't have to be. Being connected to various mortgage lenders in the Taylorsville area has helped me understand a few things that can make the process of applying for a loan a snap.

1 – Create a list of questions regarding your loan program

If you do not totally realize the pros and cons of the different loan programs, make sure to have a list of questions. I or one of my trusted lenders can assist you with understanding the advantages and disadvantages of each one, because it can be hard to know the characteristics of both fixed and adjustable rate mortgages.

2 – Decide when you want to lock

When you lock in the rate, the lender is sure to keep to the mortgage 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 of your loan application and at the time of closing. Buyers who choose to float think that 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 interest rate

If you elect to pay additional points to lower the interest rate of your mortgage loan, you will pay for them in cash at the time of closing. Each point is 1 percent of the loan. Click here to use our points calculator. It will help you determine if purchasing points is the best option for you.

4 – Compile your paperwork

Obtaining a loan requires lots of paperwork, so you should spend some time getting your documentation together. Click here to get a list of normal loan documentation.