For many buyers, applying for the mortgage loan can be one of the more stressful aspects of buying a home. The loan application need not be a stressful time. By following a few easy steps, you'll sail through the loan application process.
One of your first steps should be to call me at 636.274.4886 or e-mail me at mike@mikehiggins.com for a list of local, reputable lenders. These are the "good guys" that don't necessarily quote the "LOWEST PRICES IN ST. LOUIS" in every Sunday's newspaper. Most are prime lenders, these are the companies that the other companies in the newspaper get their loans from. There are lots of "games" these lenders play, I will only work with the companies that "shoot straight"!
Before we write a contract, I want to know, and you need to know, that all your financing will work through a smooth closing with no suprises.
Make a list of any questions you have about the loan program. Be sure you understand the advantages and disadvantages of the various mortgage programs for which you may qualify, including the advantages and disadvantages of Fixed Rate Mortgages versus Adjustable Rate Mortgages.
Decide if you want to lock-in or float the loans interest rate. Locking-in the rate means that the lender commits to the mortgage interest rate for the loan typically at the time the loan application is submitted. By floating the rate, you can lock-in the interest rate anytime between the loan application day and closing. Buyers opt to float the loan when they believe interest rates will drop after their loan application date and prior to closing. The risk is that rather than dropping, interest rates rise, increasing the mortgage payment.
Decide if you want to pay additional points to lower your interest rate. Typically you can elect to pay additional points (each point is 1 percent of the mortgage loan payable in cash at closing) to lower the interest rate of your mortgage loan.
