Applying for your loan in Covina with help from All Seasons Real Estate, Inc
Most people think that applying for financing is one of the most stressful elements of buying a house, but it doesn't have to be.
I have a close relationship with various lending companies in the Covina area, and they've helped me learn some things that will make the loan application process much easier.
1 – Organize a list of questions regarding your loan program
Be sure to have a list of questions with you if you do not fully understand the advantages and disadvantages of all the different loan programs.
I or one of my lender contacts will be able to assist you in understanding the advantages and disadvantages of each one, because it is a challenge to understand the distinctions between both fixed and adjustable rate mortgages.
2 – Determine when to lock
When you lock in the rate, a lender is guaranteed to commit to the interest rates for the loan – most often at the time the loan application is sent in.
By floating the rate, you can lock the rate at any time between the loan application day and issuance of closing documents. Buyers who opt to float presume that the interest rates will fall 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 decrease your interest rate
Generally you can choose to pay additional points to lower the interest rate of your mortgage loan. Every point is 1 percent of the mortgage loan and is payable in cash at the time of closing.
Click here to use our points calculator. It will help you determine if purchasing points is the best option for you.
4 – Gather your paperwork
Getting a loan requires lots of paperwork, so you should take some time to get all your documentation together. Click here to get a list of typical loan documentation.