Applying for a loan with the help of Hot Homes Realty

Many buyers think applying for a loan is one of the more demanding parts of buying a home, but it doesn't have to be. Being close with several lending companies in the Dunedin area has helped me learn a few things that make the loan application process easy.

1 – Compose a list of questions about your loan program

Be sure to have a list of questions if you find that you don't perfectly comprehend the advantages and disadvantages of all the different loan programs. I or one of my lender contacts can help you understand the advantages and disadvantages of both programs, because it's a challenge to understand the differences between fixed and adjustable rate mortgages.

2 – Decide when you want to lock

Locking in a rate indicates that your lender keeps to the mortgage interest rates for the loan – commonly at the time the loan application is sent in. By floating the rate, you can lock the rate anytime between the day you apply for your loan and the issuing of closing documents. Those who decide to float conclude that interest rates will decline 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 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 assist you with deciding if buying points is the best option for you.

4 – Compile your paperwork

Acquiring a mortgage loan requires a lot of paperwork, so you should spend some time getting all your documentation together. Click here to get a list of normal loan documentation.