Loan
Application Checklist
For
many buyers, applying for the mortgage loan is one of the more stressful
aspects of buying a home. The loan application need not be a stressful
time. By following a few easy
steps, you'll sail through the loan application process.
- Make a list of any questions you have about the loan
program.
Be sure you understand the advantages and disadvantages of the
various mortgage programs for which you may qualify, including
the advantages and disadvantages of Fixed Rate Mortgages versus
Adjustable Rate Mortgages.
- Decide if you want to lock-in or float the loan's
interest rate.
Locking-in the rate means that the lender commits to the
mortgage interest rate for the loan typically at the time the
loan application is submitted. By floating the rate, you can
lock-in the interest rate anytime between the loan application
day and closing. Buyers opt to "float the loan" when
they believe interest rates will drop after their loan
application date and prior to closing. The risk is that rather
than dropping, interest rates may rise, increasing the mortgage
payment.
- Decide if you want to pay additional points to lower
your interest rate.
Typically you can elect to pay additional points (each point is
1 percent of the mortgage loan payable in cash at closing) to
lower the interest rate of your mortgage loan.
- Gather your paperwork.
Click
here to view a list of typical loan documentation.
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