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Bart Patterson

Manager

Applying for a Loan



 

Applying for your loan
Getting your loan locked down is just one aspect of getting into a new home. RE/MAX Classic is seasoned at aiding both new and experienced buyers alike in all areas of real estate. Call us today at 734-459-1010 if your needs include a professional REALTOR® ready for the business side of real estate.  For many people, applying for a loan can be one of the more stressful elements of purchasing a home. But it doesn't have to be. I have worked with many lenders over the years, and they've helped me recognize a few things that make the loan application process a snap.

1 – Create a list of questions about your loan program

If you find that you do not thoroughly realize the pros and cons of the different programs, make sure to have a list of questions with you. I or one of my lenders will assist you in understanding the advantages and disadvantages of each one, because it can be hard to understand the characteristics of both fixed and adjustable rate mortgages.

2 – Determine when you want to lock

Locking in an interest rate denotes that the lender keeps to the mortgage interest rates for the loan – ordinarily at the time the loan application is received. By floating the rate, you can lock the rate at any time between the loan application day and at the time of closing. Buyers who choose to float believe interest rates will dip 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 reduce your interest rate

If you choose to pay additional points to lower the interest rate of your loan, you will pay for them in cash at the time of closing. Every point is 1 percent of the loan. Talk with your loan officer about buying points and if that is the right decisions for you.

4 – Compile your paperwork

Getting a mortgage loan requires lots of paperwork, so you should spend some time getting all your documentation together. Click here to see common information that goes on a loan application.