Applying for your new home loan

When purchasing a home, applying for financing is distressing for many people, but it doesn't have to be. I'm well-connected to a lot of lending companies in Prairieville, and they've helped me recognize a few things that make the process of applying for a loan a snap.

1 – Compose a list of questions regarding your loan program

If you find that you don't fully realize the advantages and disadvantages of all the different programs, make sure you have a list of questions with you. I or one of my trusted lenders will be able to assist you in understanding the advantages and disadvantages of each one, because it is a challenge to understand the differences between fixed and adjustable rate mortgages.

2 – Decide when you want to lock

When you lock in the rate, the mortgage lender is sure to hold to the interest rates for the loan – generally at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the day you apply for the loan and at the time of closing. Those who opt to float believe that interest rates will fall 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 rate

Usually you can opt to pay additional points to lower the rate of your mortgage loan. Every point is 1 percent of the loan and is payable in cash at the time of closing. Click here to use our points calculator. This tool will help you decide if purchasing points is the best option for you.

4 – Bring your paperwork

Obtaining a mortgage loan requires a lot of paperwork, so you should take some time to get all your documents together. Click here to get a list of common loan documentation.