Applying for your loan

When purchasing a home, applying for a mortgage loan is very exasperating for many people, but it doesn't have to be. I'm pretty close with many mortgage lenders in Landrum, and they've helped me realize some things that can make the process of applying for a loan easy.

1 – Create a list of questions regarding your loan program

If you do not completely understand the ins and outs of all the different programs, be sure to bring a list of questions with you. Oftentimes, it can be a challenge understanding the differences between fixed and adjustable rate mortgages. I or one of my trusted lenders can assist you in understanding the advantages and disadvantages of both programs.

2 – Determine when you want to lock

By locking in the interest rate, the lender is keeping to the mortgage interest rates for the loan – often at the time the loan application is presented. By floating the rate, you can lock the rate anytime between application and closing. Those who choose to float conclude the interest rates will dip 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 reduce your interest rate

Oftentimes you can opt to pay additional points to lower the interest rate of your loan. Each point is 1 percent of the mortgage loan and is payable in cash at the time of closing. If you're unsure as to whether or not buying points is the best option for you, click here to use our points calculator.

4 – Bring your paperwork

Getting 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 general loan documentation.