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Getting your loan locked down is just one aspect of a real estate transaction. Pillar Real Estate is seasoned at helping new and experienced in all areas of real estate. Call us today at 630-629-9940 if your needs include a professional REALTOR® ready for the business side of buying and selling.

Applying for your new home loan

When buying a home, applying for financing is troublesome for many people, but it doesn't have to be. I have close working relationships with various lending companies in Lombard, and they've helped me recognize a few things that will make the loan application process a snap.

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

If you don't perfectly comprehend the ins and outs of all the various loan programs, be sure you bring a list of questions. It can be a challenge understanding the characteristics of fixed and adjustable rate mortgages. I or one of my trusted lenders can help you understand the advantages and disadvantages of each one.

2 – Determine when to lock

When you lock in a rate, a mortgage lender is guaranteed to hold to the mortgage interest rates for the loan – often at the time the loan application is received. By floating the rate, you can lock the rate anytime between the day of your loan application and the issuing of closing documents. Those who choose 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 reduce your interest rate

Generally you can opt to pay additional points to lower the interest rate of your loan. Each point is 1 percent of the loan and is payable in cash at the time of closing. If you're undecided as to whether or not buying points is the best option for you, click here to use our points calculator.

4 – Gather your paperwork

Obtaining a mortgage loan requires lots of paperwork, so you should take some time to get all your documentation together. Click here to see general information that goes on a loan application.