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Buyers Links
Loan Application
Checklist
For many buyers, applying for the mortgage loan is the most stressful
aspect of buying a home. By following a few easy steps, you can manage the loan
application process.
- Make a list of any questions about the loan
program.
Be sure to understand the advantages and disadvantages different
types of mortgage programs. Including the
advantages and disadvantages of Fixed Rate Mortgages versus
Adjustable Rate Mortgages.
- Decide if you want to lock-in or float the loan's interest
rate.
Locking-in the rate means that the lender commits to the mortgage
interest rate for the loan - typically at the time the loan
application is submitted. By floating the rate, you can lock-in the
interest rate anytime between the loan application day and closing.
Buyers opt to "float the loan" when they believe interest
rates will drop after their loan application date and prior to
closing. The risk is that rather than dropping, interest rates may
rise, increasing the mortgage payment.
- Decide if you want to pay additional points to lower your
interest rate.
You may be allowed to pay additional points (each point is 1
percent of the mortgage loan payable in cash at closing) to lower
the interest rate of your mortgage loan. Also making a larger down payment
will decrease your monthly payment and can decrease the amount of
interest paid over the term of the loan.
- Gather your paperwork.
Click
here to view a list of typical loan documentation.
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Shirley
Mazzeo