Looking to finance your new home in Rice Lake?
When buying a home, applying for the mortgage loan is a very stressful event for a lot of people, but it doesn't have to be.
I'm well-connected with several lenders in Rice Lake, and they've helped me recognize a few things that can make the process of applying for a loan very easy.
1 – Create a list of questions about your loan program
If you find that you don't thoroughly understand the advantages and disadvantages of all the different loan programs, make sure to bring a list of questions with you.
It can be a challenge to understand the differences between fixed and adjustable rate mortgages. I or one of my lender contacts can help you understand the advantages and disadvantages of both programs.
2 – Decide when you want to lock
When you lock in a rate, the mortgage lender is guaranteed to hold to the 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 of your loan application and closing. Buyers who prefer to float conclude 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 lower your rate
Oftentimes you can opt to pay additional points to lower the rate of your loan. Every point is 1 percent of the loan and is payable in cash at the time of closing.
Click here to use our points calculator. This tool will help you determine if buying points is right for you.
4 – Gather your paperwork
Getting a mortgage loan requires a lot of paperwork, so you should take some time to get all your documents together. Click here to get a list of general loan documentation.