Looking to finance your home?

When purchasing a home, applying for the loan is a very troublesome event for most people, but it doesn't have to be. I have a close relationship with some mortgage lenders in Fort lauderdale, and they've helped me learn a few things that will make the process of applying for a loan a snap.

1 – Compose a list of questions regarding your loan program

Make sure to bring a list of questions if you find that you don't perfectly understand the advantages and disadvantages of all the various programs. I or one of my lender contacts can help you understand the advantages and disadvantages of each program, because it is a challenge to understand the differences between both fixed and adjustable rate mortgages.

2 – Determine when you want to lock

By locking in an interest rate, your lender is keeping to the mortgage interest rates for the loan – typically at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the day you apply for your loan and issuance of closing documents. Buyers who prefer to float presume that interest rates will dip 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 decrease your interest rate

Normally you can choose to pay additional points to lower the rate of your loan. Each point is 1 percent of the loan and is payable in cash at closing. Click here to use our points calculator. This tool will assist you in determining if purchasing points is the best option for you.

4 – Compile your paperwork

Obtaining a mortgage loan requires a lot of paperwork, so you should spend some time getting all your documentation together. Click here for a list of normal loan documentation.