Are you financing a home in Austin?
When buying a home, applying for financing is a stressful event for a lot of people, but it doesn't have to be.
I have a close relationship with a lot of lenders in Austin, and they've helped me recognize a few things that make the loan application process very manageable.
1 – Organize a list of questions about your loan program
Be sure to have a list of questions if you find that you don't thoroughly comprehend the advantages and disadvantages of the different programs.
It is hard to know the differences between both fixed and adjustable rate mortgages. I or one of my trusted lenders can assist you with understanding the advantages and disadvantages of both.
2 – Determine when to lock
When you lock in the interest rate, it indicates that the mortgage lender holds to the mortgage interest rates for the loan – usually at the time the loan application is presented.
By floating the rate, you can lock the rate at any time between application and the issuing of closing documents. Those who prefer to float presume interest rates will plunge 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 lower your rate
If you choose to pay additional points to lower the interest rate of your loan, you'll do so by paying for them in cash at the time of closing. Each point is 1 percent of the mortgage loan.
To determine if buying points is right for you, click here to use our points calculator.
4 – Compile your paperwork
Obtaining 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 general loan documentation.