Applying for your new home loan with help from Provident Realty Group

Applying for the loan is one of the most troublesome elements of purchasing a house, but it doesn't have to be. I'm familiar with many lenders in the Stockton area, and they've helped me realize some things that make the process of applying for a loan easy.

1 – Assemble a list of questions regarding your loan program

If you don't fully realize the pros and cons of the various programs, be sure you have a list of questions with you. At times, it can be hard to understand the differences between both fixed and adjustable rate mortgages. I or one of my lenders will be able to assist you with understanding the advantages and disadvantages of both programs.

2 – Decide when you want to lock

Locking in the rate indicates that a lender guarantees the interest rates for the loan – usually at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the day you apply for your loan and the issuing of closing documents. Those who elect to float believe the interest rates will plunge in the near future. Click here to see the outlook for the next 90 days of interest rates.

3 – Determine if you want to pay additional points to reduce your rate

Usually you can choose to pay additional points to lower the interest rate of your loan. Every point is 1 percent of the mortgage loan and is payable in cash at the time of closing. 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

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