Thinking about financing your new home?

When purchasing a home we can point you in the right direction. Applying for the mortgage loan is distressing for a lot of people, but it doesn’t have to be. I have close relationships with a lot of mortgage lenders in Berks, Lancaster, and Montgomery Counties in southeast Pennsylvania. They’ve have helped us realize some things that make the process of applying for a loan pretty simple.

 

1 – Create a list of questions about your loan program

Make sure to bring a list of questions if you find that you do not fully comprehend the ins and outs of all the various programs. Oftentimes, it can be a challenge to understand the characteristics of both fixed and adjustable rate mortgages. I, or one of my trusted lenders, can help you understand the advantages and disadvantages of each one.

2 – Determine when you want to lock

Locking in an interest rate designates that your mortgage lender holds to the interest rates for the loan – usually at the time the loan application is received. By floating the rate, you can lock the rate at any time between the day you apply for the loan and at the time of closing. Buyers who prefer to float believe that 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 interest rate

When you opt to pay additional points to lower the rate of your loan, you will do so by paying for them in cash at closing. Each point is 1 percent of the mortgage loan. Click here to use our points calculator. It will assist you in determining if purchasing points is the best option for you.

4 – Gather your paperwork

Getting a loan requires lots of paperwork, so you should take some time to get your documentation together. Click here to get a feel for common questions you’ll have to answer on a loan app.