Applying for a home loan in Philadelphia

When purchasing a home, applying for a mortgage loan is distressing for many people, but it doesn't have to be. Having connections with several mortgage lenders in the Philadelphia area has helped me realize some things that make the loan application process uncomplicated.

1 – Make a list of questions regarding your loan program

If you don't totally comprehend the ins and outs of all the different programs, make sure you bring a list of questions. I or one of my lenders can assist you in understanding the advantages and disadvantages of both programs, because it can be hard to know the distinctions between both fixed and adjustable rate mortgages.

2 – Determine when you want to lock

Locking in the rate signifies that the 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 prefer to float believe that the interest rates will drop 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 lower your interest rate

If you choose to pay additional points to lower the rate of your mortgage loan, you'll pay 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 help you determine if buying points is right for you.

4 – Compile your paperwork

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