After You Apply - Loan Program, Points, and Disclosures After I process your application, we will discuss the various loan programs for which you qualify - from fixed-rate and adjustable-rate to FHA/VA. When we discuss the various loan programs, I may be able to offer you a range of interest rates with different (amounts of) points. It's wise to consider how much you can afford to pay up front before accepting a loan with more points. You may be able to add the cost of the points to your loan and finance them. However, if points are included in the loan amount, you will be charged interest on the points for the life of the loan, which will increase your monthly payments. After we've discuss and determined the loan program that's right for you, I will provide you with several disclosure documents, including a: Good Faith Estimate: this document details your closing costs and your monthly payment (principal and interest). Truth in Lending Statement: this document details the cost of finance charges and the total amount you'll pay for credit. You will also receive additional disclosures, including any required by your state and/or specific loan program. Locking in Your Interest Rates Depending on market conditions, you may prefer to "lock in" your interest rate immediately while you shop for a home, or wait until you're almost ready to close on your loan. Be sure to ask how far in advance you can lock in a guaranteed rate - a longer lock period may affect your costs. When you're ready to lock in your interest rate, we'll give you a written statement guaranteeing your loan's interest rate for a specific amount of time (usually 30 to 60 days) before your loan closes. As always, if you have any questions, please contact me, and I will be happy to help you with this, and all other stages of the home buying process. |