Are you financing your home?

Many buyers think applying for a mortgage loan is one of the most distressing elements of buying a home, but it doesn't have to be. I have a close relationship with some mortgage lenders in the Davie area, and they've helped me realize some things that will make the process of applying for a loan much easier.

1 – Organize a list of questions regarding your loan program

Make sure you bring a list of questions if you do not fully comprehend the ins and outs of all the different loan programs. I or one of my lender contacts will assist you in understanding the advantages and disadvantages of both programs, because it can be a challenge to know the differences between both fixed and adjustable rate mortgages.

2 – Decide when to lock

Locking in the rate designates that your lender keeps to the mortgage interest rates for the loan – generally at the time the loan application is presented. By floating the rate, you can lock the rate anytime between application and at the time of closing. Those who choose to float believe that the interest rates will fall 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

Typically you can choose to pay additional points to lower the interest rate of your loan. Each point is 1 percent of the mortgage loan and is payable in cash at the time of closing. To determine if buying points is right 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 to get a list of typical loan documentation.