Are you going to finance your new home in Davie?

When purchasing a home, applying for financing is exasperating for most people, but it doesn't have to be. Being connected to several mortgage lenders in Davie has helped me learn some things that can make the loan application process very manageable.

1 – Create a list of questions regarding your loan program

If you find that you don't completely realize the advantages and disadvantages of all the various programs, make sure to have a list of questions. Oftentimes, it can be a challenge to know the characteristics of fixed and adjustable rate mortgages. I or one of my trusted lenders can help you understand the advantages and disadvantages of each.

2 – Determine when to lock

When you lock in the interest rate, a lender is sure to keep to the mortgage interest rates for the loan – commonly at the time the loan application is presented. By floating the rate, you can lock the rate anytime between the day of your loan application and issuance of closing documents. Buyers who prefer to float believe that 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 lower your rate

Typically you can opt to pay additional points to lower the interest rate of your mortgage loan. Each point is 1 percent of the mortgage loan and is payable in cash at the time of closing. To decide if purchasing points is right for you, click here to use our points calculator.

4 – Gather your paperwork

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