Are you thinking of financing a new home in the Austin area?
For most people, securing the loan can be one of the most distressing elements of buying a house. But it doesn't have to be. I have close relationships with a lot of lenders in the Austin area, and they've helped me understand some things that will make the loan application process uncomplicated.
1 – Create a list of questions about your loan program
If you don't thoroughly realize the ins and outs of all the various programs, make sure to have a list of questions with you. One of my lenders or I will be able to assist you with understanding the advantages and disadvantages of both programs, because it can be hard to know the characteristics of both fixed and adjustable rate mortgages.
2 – Decide when to lock
When you lock in a rate, the lender is guaranteed to keep to the interest rates for the loan – typically at the time the loan application is presented. By floating the rate, you can lock the rate anytime between the day of your loan application and issuance of closing documents. Buyers who opt to float believe interest rates will dip 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
If you elect to pay additional points to lower the interest rate of your mortgage loan, you'll do so by paying for them in cash at closing. Every point is 1 percent of the loan. To determine if purchasing points is right for you, click here to use my points calculator.
4 – Gather your paperwork
Acquiring a mortgage loan requires a lot of paperwork, so you should spend some time getting your documentation together. Click here to see common questions you'll have to answer on a loan app.