Are you financing a home in Cape Coral?
When buying a home, applying for the loan is a exasperating event for most people, but it doesn't have to be.
Being connected to various lenders in Cape Coral has helped me realize a few things that will make the loan application process a breeze.
1 – Compile a list of questions about your loan program
Make sure you have a list of questions if you do not perfectly comprehend the ins and outs of all the different programs.
Oftentimes, it can be a challenge to understand the characteristics of both fixed and adjustable rate mortgages. I or one of my lenders can assist you in understanding the advantages and disadvantages of both programs.
2 – Decide when to lock
By locking in the rate, a lender is committing to the interest rates for the loan – ordinarily at the time the loan application is submitted.
By floating the rate, you can lock the rate anytime between the day you apply for the loan and at the time of closing. Those who elect to float believe 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 reduce your rate
If you decide to pay additional points to lower the rate of your mortgage loan, you will pay for them in cash at the time of closing. Every point is 1 percent of the loan.
To decide if buying points is right for you, click here to use our points calculator.
4 – Gather your paperwork
Getting a mortgage loan requires a lot of paperwork, so you should take some time to get your documents together. Click here to get a list of common loan documentation.