Mortgage Loan Application Checklist

Professional Help with your Home Loan Application

• Start planning 6 Months before you apply for a home mortgage.

  Buying a home is a very serious investment that must work right on the first try with no mistakes. Patience and planning wins this game, do not be impulsive. Make sure your credit is clean, and then apply for a home mortgage.

• Use this time to clean up your credit report.

  Be sure to get funds that are contributed by family into your account long before the lenders go looking for it. Most lenders do not allow money given to you by family members to count toward a down payment, so you have to bury it early in your account.

• You can get your credit report from sites like Equifax Score Power, True Credit and Consumerinfo.

  If you plan on buying in June and July, you need to start planning your finances in January.

• You should get your credit report at least once every year to verify it for accuracy, and make certain your credit score is up to par.

  If your credit is clean and you have your down payment ready to go, you won't need as much time to plan.

• Make a list of any questions you have about the home mortgage loan program.

  Be sure you understand the advantages and disadvantages of the various mortgage programs for which you may qualify. Evaluate advantages and disadvantages of Fixed Rate Mortgages versus Adjustable Rate Mortgages.

• Fixed Rate Mortgages (FRM) - FRMs are still considered the best types of loans available for many people due the simple fixed rate concept. This entails that the interest rate will not fluctuate over time.
• Adjustable Rate Mortgage (ARM) – The main difference in regard to the FRM is the fluctuating mortgage rate. This is dependent on outside influences such as the prime interest rate. The main advantage is that the rate can be favorably low at times.

• Do you want to lock-in or float the mortgage 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.

• Consider to paying additional points to lower your mortgage interest rate.

  Typically you may choose to pay additional loan points (each point is 1 percent of the mortgage loan payable in cash at closing) to lower the interest rate of your mortgage loan.

• Gather your paperwork. Click here to view a list of typical loan documentation.

Why Choose Collins Development Co?

Collins Development Co offers a complete range of custom home services: lot selection, home financing, house design, interior design, landscaping design, engineering, permitting, and construction management

Contact us today and let's talk about how to get started.