Information

Buying a home could be the most stimulating, bewildering and stressful financial transaction you ever undertake. Even if you have done it numerous times you can still find the process complicated and intimidating, particularly when it comes to getting a mortgage loan. Countless loan documents, peculiar terminology and anxiety serve to temper the joy of buying a new home. As soon as the sales offer and contract is ratified, securing the financing for the purchase becomes paramount for all but a very few buyers. If you know the steps required to qualify for a loan, however, much of the stress can be avoided. The following explanation of the loan application interview process is intended to help you through the intricacies of obtaining a mortgage loan.

The Loan Application Interview

Once you have selected a mortgage broker, the following step will probably be a conference with a loan officer or other lender representative, whose assignment is to begin the attaining of information the lender desires to approve the loan. They will define the types of mortgage loans available to you, the interest rates and fees for each type and the qualification requirements. During the meeting, the loan officer will fill out, or assist you in filling out, the loan application form.

Most lenders will offer a range of interest rate/point combinations to meet the borrower needs. In general, the higher the interest rate, the lower the points. For example, if the current market provides for an 8.5 percent interest rate with 2 points, a nine percent rate may be offered at no points. If you are a first-time home buyer, the larger monthly payments on the 9 percent loan may be easier to handle than the 2 points that will require additional cash at settlement. The loan officer is prepared to explain all of the mortgage information and your options to you when buying a home.