Applying for your home loan

Many people think that applying for mortgage financing is one of the most exasperating parts of buying a house, but it doesn't have to be. I'm pretty familiar with many lenders in the Davie area, and they've helped me realize some things that will make the loan application process effortless.

1 – Organize a list of questions about your loan program

If you find that you do not thoroughly realize the pros and cons of all the different loan programs, be sure you bring a list of questions with you. It can be hard to understand the distinctions between fixed and adjustable rate mortgages. I or one of my trusted lenders will be able to assist you with understanding the advantages and disadvantages of each one.

2 – Determine when to lock

When you lock in an interest rate, it indicates that the mortgage lender holds 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 application and closing. Buyers who choose to float presume the interest rates will decline 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

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

4 – Gather your paperwork

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