Applying for your home loan in Austin with the help of John Horton Realty

When buying a home, applying for the mortgage loan is a exasperating event for most people, but it doesn't have to be. I'm pretty connected to various lenders in the Austin area, and they've helped me realize some things that will make the loan application process effortless.

1 – Put together a list of questions about your loan program

Make sure you bring a list of questions if you find that you don't totally understand the pros and cons of the various programs. I or one of my lenders can help you understand the advantages and disadvantages of both programs, because it is hard to understand the differences between fixed and adjustable rate mortgages.

2 – Decide when you want to lock

Locking in an interest rate signifies that a mortgage lender guarantees the mortgage interest rates for the loan – generally at the time the loan application is received. By floating the rate, you can lock the rate anytime between the loan application day and at the time of closing. Buyers who decide to float believe that the interest rates will decline 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 interest rate

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

4 – Gather your paperwork

Acquiring a loan requires a lot of paperwork, so you should take some time to get all your documents together. Click here for a list of normal loan documentation.