Are you financing a new home?

When purchasing a home, applying for the loan is stressful for most people, but it doesn't have to be. I'm pretty well-connected to several lenders in Prairieville, and they've helped me realize some things that will make the process of applying for a loan very manageable.

1 – Make a list of questions regarding your loan program

If you find that you do not totally understand the advantages and disadvantages of all the various programs, make sure you bring a list of questions. I or one of my trusted lenders can assist you in understanding the advantages and disadvantages of both programs, because it can be a challenge to understand the differences between both fixed and adjustable rate mortgages.

2 – Decide when to lock

Locking in the interest rate means that the lender guarantees the interest rates for the loan – commonly at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the day you apply for your loan and issuance of closing documents. Buyers who choose to float conclude the 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 decrease your interest rate

When you decide to pay additional points to lower the interest rate of your mortgage loan, you will do so by paying for them in cash at the time of closing. Every point is 1 percent of the loan. Click here to use our points calculator. It will assist you with deciding if buying points is the best option for you.

4 – Compile your paperwork

Obtaining a mortgage loan requires lots of paperwork, so you should spend some time getting all your documents together. Click here for a list of common loan documentation.