Are you financing your home?

Applying for financing can be one of the most exasperating parts of purchasing a house for a buyer, but it doesn't have to be. I'm familiar with various lending companies in Palm Harbor, and they've helped me recognize a few things that can make the loan application process easy.

1 – Compose a list of questions about your loan program

Make sure you have a list of questions with you if you do not thoroughly realize the pros and cons of the different loan programs. I or one of my lenders can help you understand the advantages and disadvantages of both programs, because it's a challenge to know the distinctions between fixed and adjustable rate mortgages.

2 – Determine when to lock

By locking in a rate, a mortgage lender is committing to the mortgage interest rates for the loan – normally at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the day you apply for your loan and the issuing of closing documents. 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 – Determine if you want to pay additional points to decrease your interest rate

If you opt to pay additional points to lower the interest rate of your mortgage loan, you will do so by paying for them in cash at closing. Every point is 1 percent of the mortgage loan. Click here to use our points calculator. This tool will assist you with determining if purchasing points is right for you.

4 – Compile your paperwork

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