Applying for a mortgage loan is a paper-intensive process
You will sign dozens, possibly hundreds, of documents and disclosures before it’s all through. You’ll also have to provide certain documents relating to your financial background.
The lender will start asking for these items soon after you submit your application. If you start gathering them now, the process will move more quickly later on. I recommend that start a mortgage file or folder to keep your documents together.
Before you apply for a mortgage loan, you should be familiar with the average interest rates being offered by lenders
Note: Make sure you give your lender photocopies or faxes of the original. Do not give away your original documents when you apply for the loan. Keep the originals in the mortgage file I suggested earlier. The lender will need the original versions of any of their documents you’ve signed, such as the application form. But you should keep the original version of your documents (tax returns, bank statements, etc.). Of course, there are exceptions to every rule. But this is generally how it works.
This is the only way to know if the lender is offering you a good rate. Are they offering the average rate? Is it better than average? Or is it below average? Obviously, this is something you want to know.
If we had chosen the first or second one, we would have paid more interest and faced a higher requirement for cash reserves
Mortgage rates fluctuate constantly, like a rollercoaster with no end. Following the weekly trends will suffice. You can find this information online. Freddie Mac publishes a weekly survey of the primary mortgage market. This survey shows you the average rates for the most popular loan categories — 30-year fixed, 15-year fixed, 5-year ARM and the 1-year ARM. (mais…)