Applying for a new home loan

When buying a home, applying for the loan is a very stressful event for most people, but it doesn't have to be. I have a close relationship with several mortgage lenders in Oil City, and they've helped me learn a few things that will make the process of applying for a loan much easier.

1 – Compose a list of questions about your loan program

Be sure you bring a list of questions with you if you find that you do not entirely comprehend the advantages and disadvantages of all the various programs. It can be a challenge to know the distinctions between both fixed and adjustable rate mortgages. I or one of my lender contacts will be able to assist you in understanding the advantages and disadvantages of both programs.

2 – Determine when you want to lock

Locking in an interest rate denotes that a mortgage lender commits to the interest rates for the loan – usually at the time the loan application is sent in. By floating the rate, you can lock the rate anytime between the loan application day and closing. Buyers who prefer to float believe the interest rates will fall 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 decrease your rate

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

4 – Compile your paperwork

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

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