Applying for a new home loan
For many people, applying for a mortgage loan is one of the most demanding parts of buying a house, but it doesn't have to be.
I'm well-connected with several lending companies in the Del Mar area, and they've helped me realize a few things that can make the loan application process easy.
1 – Create a list of questions about your loan program
Make sure to bring a list of questions if you don't thoroughly realize the ins and outs of all the different loan programs.
I or one of my lenders will assist you in understanding the advantages and disadvantages of each program, because it can be a challenge to understand the distinctions between both fixed and adjustable rate mortgages.
2 – Determine when to lock
When you lock in a rate, it designates that a 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 issuance of closing documents. Buyers who decide to float believe that the 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 lower your rate
When you decide to pay additional points to lower the interest rate of your mortgage loan, you'll do so by paying for them in cash at closing. Every point is 1 percent of the mortgage loan.
If you're unsure if buying points is right for you, click here to use our points calculator.
4 – Bring your paperwork
Acquiring a mortgage loan requires a lot of paperwork, so you should spend some time getting your documents together. Click here to get a list of typical loan documentation.