For many buyers, applying for the mortgage loan is one of the more stressful aspects of buying a home. The sooner you do this, however, the faster you'll be on your way to finding your dream home and a stress-free closing. By following a few easy steps, you'll sail through the loan application process.
Call and make an appointment with a loan officer FIRST, or at least as soon as possible in the real estate purchase process. *If you do not have a lender you are working with OR you would like a competitive quote from another lender, please feel free to contact the following mortgage consultants:
Scott Sallee of North American Savings Bank 4350 S National - Suite A100, Springfield, MO 65810 Ph: 417-883-8856 eMail: SalleeTeam@NASB.com
Steve Mayfield of Great Southern Bank 1451 E Battlefield, Springfield, MO 65804 Ph: 417-888-5876 eMail: smmayf@greatsouthernbank.com
Paula Moore, VP of BancorpSouth 620 W Republic Road, Springfield, MO 65807 Ph: 417-890-2147 eMail: Paula_Moore@signaturebank.com
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. NOTE: Make sure you are comfortable with the monthly payment of the mortgage you qualify for. Many people over-qualify for a mortgage - it's great to have a large home, if that's what you want, but make sure you leave yourself and your family room for a life ... 1/4 of your monthly income, after taxes, is a good range to be in, if you are comfortable with the monthly commitment.
Decide if you want to lock-in or float the loan's 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 may 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.
