When purchasing a home, applying for a mortgage loan is distressing for most people, but it doesn't have to be. I have close working relationships with a lot of lenders in Colorado Springs, and they've helped me learn some things that make the loan application process very manageable.
Make sure to bring a list of questions if you don't completely comprehend the advantages and disadvantages of the different programs. Oftentimes, it can be hard to understand the distinctions between fixed and adjustable rate mortgages. I or one of my lender contacts can assist you in understanding the advantages and disadvantages of each one.
Locking in a rate denotes that a mortgage lender guarantees the mortgage interest rates for the loan – commonly at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the loan application day and at the time of closing. Those who choose to float think that the interest rates will drop in the near future. Click here to see the outlook for the next 90 days of interest rates.
Typically you can choose to pay additional points to lower the rate of your loan. Every point is 1 percent of the loan and is payable in cash at closing. Click here to use our points calculator. This tool will help you determine if buying points is the best option for you.
Obtaining a loan requires lots of paperwork, so you should spend some time getting all your documents together. Click here to see typical information that goes on a loan application.