Before you Apply for a Loan

The exercise of applying for a loan may be a stressful for many of us who don’t do it every day. Just relax. The folks at the mortgage company really want to work with to successfully complete a loan transaction. Remember a very simple fact, “The mortgage company makes no money if they don’t make LOANS.”

We have tried to make this process as easy as it can be but there are some personal questions that you have to answer. The following are a few of the things that you need to think about before you begin the process;

1. Think about the questions that you have about loans and make a list. There is no such thing as a silly question. There are all sorts of mortgage loans and they have advantages and disadvantages for individual buyers. Just because it was great for your friend at the office, does not mean that it’s great for you. Ask the question.
Decide whether it is wise for you to set the mortgage up at a fixed interest rate or let it float with the market. The decision is based on a number of factors in your life. How long will you live there? In this case you might want to look at a variable interest loan with the first few years, say 5 or 7, with a fixed interest. After that the interest would change with the market interest rate. If you were going to stay in the house for a long period of time then you may want to consider a fixed rate loan. The question is still, “Is there a true advantage to let the interest rate follow the market?”

2. Should you let the interest float while you are waiting for the loan to close after commitment in hopes that a drop in interest rate will take place before closing. It may be to your advantage to set up the interest rate fixed for some period of time, usually 15 to 30 days in case you think that the rate may go up while you are waiting to close.

3. You may want to investigate paying additional points which will lower the interest rate. A point is 1 per cent of the loan amount and is not refundable. Each point will lower the interest rate by a specified amount for the life of the loan. You will need to look into this with the loan counselor when you apply.

It’s now time to gather your paperwork. Below are two buttons to click. One is a short form and the other is, of course, a long form. The short form is used to check credit at the beginning of the process to check for qualification and the long form is all the information that is required by Watson Mortgage to complete a full loan application. If you wish to complete a mortgage application then scroll to the bottom of the form and press the button which will send you to the proper form. These applications are with Watson Mortgage Company but you are under NO OBLIGATION to use Watson Mortgage.