Do you wish to finance your home in Round Rock? Expert Real Estate Resource can help.
Applying for the loan is one of the most distressing aspects of purchasing a home for a buyer, but it doesn't have to be.
I have a close business relationship with several lending companies in the Round Rock area, and they've helped me understand a few things that can make the process of applying for a loan a breeze.
1 – Compile a list of questions about your loan program
If you find that you do not thoroughly understand the pros and cons of the various loan programs, be sure to bring a list of questions.
It is a challenge to understand the differences between fixed and adjustable rate mortgages. I or one of my lenders will be able to help you understand the advantages and disadvantages of both.
2 – Decide when to lock
By locking in the interest rate, a mortgage lender is guaranteeing the interest rates for the loan – commonly at the time the loan application is submitted.
By floating the rate, you can lock the rate at any time between application and at the time of closing. Those who decide to float conclude interest rates will decline 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
Normally you can decide to pay additional points to lower the rate of your mortgage loan. Each point is 1 percent of the mortgage loan and is payable in cash at closing.
If you're undecided as to whether or not purchasing points is right for you, click here to use our points calculator.
4 – Gather your paperwork
Acquiring a 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.