Applying for a loan in Covina
Applying for the loan can be one of the most troublesome aspects of buying a house, but it doesn't have to be.
I'm very close to several lending companies in the Covina area, and they've helped me realize a few things that will make the process of applying for a loan uncomplicated.
1 – Put together a list of questions about your loan program
Be sure to have a list of questions with you if you find that you do not totally realize the advantages and disadvantages of the different loan programs.
It is a challenge to know the distinctions between fixed and adjustable rate mortgages. I or one of my trusted lenders will be able to help you understand the advantages and disadvantages of both.
2 – Decide when to lock
When you lock in an interest rate, it signifies that a lender guarantees the mortgage interest rates for the loan – generally at the time the loan application is submitted.
By floating the rate, you can lock the rate at any time between the day of your loan application and the issuing of closing documents. Buyers who opt to float presume that interest rates will plunge 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 reduce your rate
If you decide to pay additional points to lower the rate of your mortgage loan, you'll pay for them in cash at closing. Each point is 1 percent of the loan.
Click here to use our points calculator. This tool will help you determine if purchasing points is the best option for you.
4 – Bring your paperwork
Acquiring a mortgage loan requires a lot of paperwork, so you should take some time to get all your documentation together. Click here for a list of common loan documentation.