Applying for your home loan

Applying for a mortgage loan is one of the most stressful parts of purchasing a home, but it doesn't have to be. I'm pretty connected to several lenders in the Tamuning area, and they've helped me recognize a few things that will make the loan application process easy.

1 – Compose a list of questions about your loan program

If you don't totally comprehend the pros and cons of all the different loan programs, be sure you have a list of questions. I or one of my lenders can assist you in understanding the advantages and disadvantages of each one, because it's hard to know the characteristics of fixed and adjustable rate mortgages.

2 – Determine when to lock

When you lock in the interest rate, it denotes that a lender holds to the mortgage interest rates for the loan – commonly at the time the loan application is received. By floating the rate, you can lock the rate anytime between the loan application day and at the time of closing. Buyers who prefer to float think that 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 lower your rate

When you opt to pay additional points to lower the rate of your loan, you will pay for them in cash at closing. Every point is 1 percent of the loan. Click here to use our points calculator. It will assist you in determining if purchasing points is the best option for you.

4 – Compile your paperwork

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