Applying for your new home loan with the help of Remax Components
Many people think applying for a loan is one of the most troublesome elements of buying a home, but it doesn't have to be.
Being familiar with some lenders in Maryland has helped me realize a few things that will make the loan application process much easier.
1 – Make a list of questions regarding your loan program
Make sure you bring a list of questions with you if you find that you don't completely comprehend the advantages and disadvantages of the various loan programs.
At times, it can be hard to understand the differences between both fixed and adjustable rate mortgages. I or one of my lenders can help you understand the advantages and disadvantages of both programs.
2 – Determine when to lock
When you lock in a rate, it means that your mortgage lender guarantees the mortgage interest rates for the loan – normally at the time the loan application is received.
By floating the rate, you can lock the rate anytime between the day of your loan application and issuance of closing documents. Those who elect to float presume the interest rates will drop 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 lower your rate
Normally you can decide to pay additional points to lower the rate of your loan. Each point is 1 percent of the mortgage loan and is payable in cash at the time of closing.
To decide if you should buy points, click here to use our points calculator.
4 – Bring your paperwork
Obtaining a loan requires lots of paperwork, so you should take some time to get all your documents together. Click here to get a list of normal loan documentation.