Applying for your new home loan in Covina
Many buyers believe that applying for the mortgage loan is one of the more demanding elements of purchasing a home, but it doesn't have to be.
I have a close relationship with many lending companies in Covina, and they've helped me understand some things that can make the loan application process pretty simple.
1 – Put together a list of questions regarding your loan program
If you do not fully realize the advantages and disadvantages of all the different programs, be sure you bring a list of questions.
At times, it can be hard to understand the characteristics of fixed and adjustable rate mortgages. I or one of my lender contacts can help you understand the advantages and disadvantages of each.
2 – Decide when to lock
Locking in indicates that a lender keeps to the mortgage interest rates for the loan – commonly at the time the loan application is submitted.
By floating the rate, you can lock the rate anytime between the loan application day and closing. Those who opt to float believe 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 rate
If you opt to pay additional points to lower the rate of your loan, you'll pay for them in cash at the time of closing. Each point is 1 percent of the loan.
To decide if buying points is the best option for you, click here to use our points calculator.
4 – Gather your paperwork
Getting a mortgage loan requires lots of paperwork, so you should take some time to get all your documentation together. Click here for a list of general loan documentation.