When purchasing a home, the mortgage loan application is very demanding for a lot of people, but it doesn't have to be. I have close business relationships with a lot of mortgage lenders in the Chesterfield area, and they've helped me learn a few things that can make the process of applying for a loan very manageable.
Make sure you have a list of questions with you if you find that you don't fully comprehend the pros and cons of the different loan programs. One of my lenders or I will be able to assist you with understanding the advantages and disadvantages of both programs, because it is a challenge to understand the characteristics of fixed and adjustable rate mortgages.
Locking in signifies that your lender keeps to the mortgage interest rates for the loan – ordinarily at the time the loan application is sent in. By floating the rate, you can lock the rate at any time between the day you apply for the loan and the issuing of closing documents. Those who decide 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.
Obtaining a mortgage loan requires lots of paperwork, so you should spend some time getting your documents together. Click here to preview normal information that goes on a loan application.
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