Are you feeling lots of anxiety over applying for a mortgage? You don't have to! I've got great connections to an excellent lender, and she has helped me realize some things that can make the process of applying for a loan a snap. Find Kim Pedersen of Residential Mortgage Group (RMG) at www.KimPedersenHome.com or call 952-417-8466.
1 – Assemble a list of questions about your loan program
If you find that you do not fully realize the ins and outs of the various programs, be sure to have a list of questions. It's a challenge to understand the characteristics of both fixed and adjustable rate mortgages. I or my trusted lender can assist you in understanding the advantages and disadvantages of both.
2 – Determine when to lock
When you lock in the interest rate, it denotes that a mortgage lender holds to the mortgage interest rates for the loan – most often at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between application and the issuing of closing documents. Those who prefer to float conclude the 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 choose to pay additional points to lower the interest rate of your loan, you'll do so by paying for them in cash at closing. Each point is 1 percent of the mortgage loan. Click here to use our points calculator. This tool will assist you with determining if purchasing points is right for you.
4 – Bring your paperwork
Getting a mortgage loan requires a lot of paperwork, so you should take some time to get all your documents together. Click here to get a feel for typical information that goes on a loan application.
