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Applying for your loan

When purchasing a home, applying for a loan is very distressing for a lot of people, but it doesn't have to be. Having connections with a lot of mortgage lenders in Mechanicsville has helped me recognize some things that make the loan application process very manageable.

1 – Compose a list of questions about your loan program

If you find that you do not perfectly comprehend the advantages and disadvantages of the different programs, make sure you bring a list of questions with you. It is a challenge understanding the differences between fixed and adjustable rate mortgages. I or one of my lenders will assist you in understanding the advantages and disadvantages of both programs.

2 – Determine when you want to lock

Locking in means that your lender holds to the interest rates for the loan – generally 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 closing. Buyers who choose to float conclude interest rates will fall 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 decrease your interest rate

If you choose to pay additional points to lower the 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 loan. Click here to use our points calculator. This tool will assist you with determining if buying points is right for you.

4 – Gather your paperwork

Getting a loan requires lots of paperwork, so you should take some time to get your documentation together. Click here to get a list of general loan documentation.