Are you financing your home?

When buying a home, applying for the loan is a exasperating event for many people, but it doesn't have to be. I have a close relationship with several lenders in Davie, and they've helped me recognize a few things that make the loan application process much easier.

1 – Make a list of questions about your loan program

If you find that you do not entirely realize the advantages and disadvantages of all the various programs, make sure to have a list of questions. I or one of my lender contacts will assist you with understanding the advantages and disadvantages of each one, because it is hard to understand the distinctions between fixed and adjustable rate mortgages.

2 – Decide when you want to lock

When you lock in the interest rate, it means that the mortgage lender commits to the mortgage interest rates for the loan – often at the time the loan application is received. By floating the rate, you can lock the rate anytime between the day you apply for the loan and at the time of closing. Buyers who choose to float believe that the interest rates will plunge in the near future. Click here to see the outlook for the next 90 days of interest rates.

3 – Decide if you want to pay additional points to reduce your interest rate

Normally you can choose 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 help you decide if buying points is right for you.

4 – Compile your paperwork

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