Are you financing a new home?

When purchasing a home, applying for a mortgage loan is a troublesome event for a lot of people, but it doesn't have to be. I have a close business relationship with various lenders in the Flowery Branch area, and they've helped me understand some things that make the loan application process very manageable.

1 – Organize a list of questions regarding your loan program

If you find that you don't thoroughly realize the ins and outs of the different programs, make sure you have a list of questions with you. Oftentimes, it can be a challenge to know the differences between fixed and adjustable rate mortgages. I or one of my lender contacts will be able to help you understand the advantages and disadvantages of both programs.

2 – Decide when you want to lock

Locking in designates that the lender commits to the mortgage interest rates for the loan – typically at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between the day you apply for your loan and the issuing of closing documents. Buyers who opt to float think that interest rates will dip 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 decrease your interest rate

Oftentimes you can elect to pay additional points to lower the interest rate of your mortgage loan. Each point is 1 percent of the mortgage loan and is payable in cash at the time of closing. Click here to use our points calculator. It will assist you in determining if purchasing points is right for you.

4 – Compile your paperwork

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