Thinking of financing your home?

Applying for the loan is one of the most exasperating aspects of purchasing a house, but it doesn't have to be. I'm pretty connected to a lot of lending companies in Landrum, and they've helped me realize a few things that make the loan application process uncomplicated.

1 – Create a list of questions regarding your loan program

If you don't completely realize the pros and cons of the different loan programs, make sure you bring a list of questions. It can be hard to understand the characteristics of fixed and adjustable rate mortgages. I or one of my trusted lenders can help you understand the advantages and disadvantages of each.

2 – Determine when to lock

When you lock in a rate, it denotes that a lender holds to the interest rates for the loan – most often at the time the loan application is received. By floating the rate, you can lock the rate at any time between the day of your loan application and issuance of closing documents. Those who elect to float think that the interest rates will drop 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 interest rate

When you choose to pay additional points to lower the rate of your mortgage loan, you will do so by paying for them in cash at closing. Every point is 1 percent of the mortgage loan. Click here to use our points calculator. It will help you determine if buying points is the best option for you.

4 – Bring your paperwork

Acquiring a loan requires a lot of paperwork, so you should spend some time getting all your documents together. Click here for a list of typical loan documentation.