Applying for a new home loan

Applying for the loan is one of the most distressing aspects of purchasing a home for a buyer, but it doesn't have to be. I have a close business relationship with some lending companies in the Miami area, and they've helped me recognize some things that make the process of applying for a loan a breeze.

1 – Compose a list of questions regarding your loan program

Make sure to bring a list of questions if you find that you do not fully comprehend the pros and cons of all the different programs. I or one of my trusted lenders will assist you in understanding the advantages and disadvantages of both programs, because it's a challenge to understand the distinctions between both fixed and adjustable rate mortgages.

2 – Decide when you want to lock

Locking in designates that a lender guarantees the interest rates for the loan – normally 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. Those who choose to float presume the interest rates will fall 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 reduce your rate

Generally you can elect to pay additional points to lower the interest rate of your mortgage loan. Every point is 1 percent of the loan and is payable in cash at closing. To decide if purchasing points is right for you, click here to use our points calculator.

4 – Bring your paperwork

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