Applying for your new home loan

When buying a home, applying for the mortgage loan is a distressing event for most people, but it doesn't have to be. I'm very close with a lot of lending companies in Milwaukee, and they've helped me recognize some things that make the process of applying for a loan much easier.

1 – Create a list of questions regarding your loan program

Make sure to bring a list of questions if you find that you don't perfectly realize the pros and cons of all the different loan programs. I or one of my lender contacts will be able to assist you with understanding the advantages and disadvantages of each one, because it can be hard to understand the differences between fixed and adjustable rate mortgages.

2 – Decide when to lock

When you lock in a rate, your mortgage lender is sure to commit to the mortgage interest rates for the loan – typically at the time the loan application is received. By floating the rate, you can lock the rate anytime between the day you apply for your loan and the issuing of closing documents. Those who choose to float think the interest rates will decline 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

Typically you can choose to pay additional points to lower the rate of your mortgage loan. Every point is 1 percent of the mortgage loan and is payable in cash at closing. Click here to use our points calculator. It will help you determine if purchasing points is right for you.

4 – Compile your paperwork

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