First of all, having the right documents on hand can make the loan process go incredibly smoothly, even closing and funding within 30 days. Required income documentation and other information needed can depend on the type of loan you are applying for, but generally the more documentation, the better, so make sure to contact us and we'll help you out with getting your documents in order. After all, it can not only affect whether you qualify for a loan, but also the quality of rates you are offered by lenders.
Keep in mind that you can get pre-qualified for a loan over the phone or internet in a matter of minutes, but being pre-approved for a loan is practically as good as cash when you start looking for a home. While this is generally part of a loan process, it helps out tremendously when you are house hunting, helping you to stay within an affordable range, as well as close on a home you like quicker.
There are several factors that can have an impact on what kind of loan is best for you. While we prefer to work with 15-year and 30-year fixed-rate mortgages, sometimes there are situations where these may not be the best option. Sure, they can help to build equity in a home and give you a better return if and when you sell your home. But if you're planning on moving in the near future, it may be best to save money that would otherwise go towards interest on your loan, by using an adjustable-rate mortgage, or ARM.
Points are thought of as prepaid interest, and in some cases, may be tax deductible. Each point is 1% of the loan's value, and the more points you pay, the lower your rate can be. This can be useful in some situations, and in others have little effect on the overall cost of the loan.
Do not make any major purchases such as a car, appliances, or furniture while your loan is closing. This could negatively affect your credit standing and subsequently affect your credit application.
While having a low interest rate is important, there are other fees that are included in the loan that can offset any savings received by getting a lower rate. These can include the annual percentage rate (APR), loan fees, discount points, and origination points. It is important to consider these costs of the loan when considering a lender, in addition to how well the lender/broker provides service to you.
With so many loan options to choose from, it is important to work with an experienced professional like Athens Mortgage Resources, Inc. so that you are truly receiving the best deal.