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. You may wish to contact a local lender directly...
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 each mortgage program.
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.
Know the in today's market your lender will need much more documentation than ever before and be prepared to show it. Gather your documents early. Here is what they will need: tax records, latest tax return or two, all records that prove income, savings and debt. Be patient the lender will have an endless request for lots of information as they are all being very cautious.
Get rid of debt by limiting what you owe making it less than 43 percent of your gross income.
Know that your credit score will drive your interest rate even more than ever. Unless your score is above 720 you will pay a higher interest rate.
Know that your down payment will be at least 10% or higher unless you use a government insured loan or a VA loan.
Barbara Adams and Kappel and Kappel Inc are licensed by the California Department of Real Estate.
Barbara Adams, Realtor DRE license # 01355372
Kappel and Kappel Inc DRE license # 00527552
Listings may not be those of this Realtor or Broker, and may be offered via IDX database sharing via the Bareis mls. Size, dimensions, condition of property, features, amenities, availability listed here must be verified or measured for satisfaction of potential buyer.
Barbara Adams, REALTOR® Kappel and Kappel 401D Davis Street Vacaville, CA 95688
Listings may not be those of this Realtor or Broker, and may be offered via IDX database sharing via the Bareis mls. Size, dimensions, condition of property, features, amenities, availability listed here must be verified or measured for satisfaction of potential buyer.