Applying for a loan

For many people, applying for the mortgage loan can be one of the most distressing aspects of purchasing a house, but it doesn't have to be. Being close with various lending companies in Point Reyes Station has helped me learn some things that make the loan application process very easy.

1 – Put together a list of questions regarding your loan program

Make sure you bring a list of questions with you if you don't entirely comprehend the advantages and disadvantages of the various programs. It is often a challenge to know the distinctions between fixed and adjustable rate mortgages. I or one of my lenders will be able to assist you in understanding the advantages and disadvantages of each one.

2 – Decide when you want to lock

When you lock in the interest rate, your mortgage lender is sure to hold to the interest rates for the loan – normally 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. Those who decide to float presume that interest rates will drop 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 lower your interest rate

Generally you can decide to pay additional points to lower the rate of your mortgage loan. Each point is 1 percent of the loan and is payable in cash at closing. Click here to use our points calculator. It will assist you in deciding if purchasing points is the best option for you.

4 – Bring your paperwork

Acquiring a loan requires lots of paperwork, so you should take some time to get your documentation together. Click here to get a list of typical loan documentation.