Thinking of financing your new home?

When buying a home, applying for a loan is a very troublesome event for most people, but it doesn't have to be. I'm very connected to several lenders in the Prairieville area, and they've helped me realize some things that can make the process of applying for a loan very manageable.

1 – Create a list of questions about your loan program

If you find that you don't totally comprehend the pros and cons of all the different loan programs, be sure you have a list of questions. It's hard to understand the distinctions between fixed and adjustable rate mortgages. I or one of my lender contacts will help you understand the advantages and disadvantages of each.

2 – Decide when you want to lock

By locking in a rate, the mortgage lender is guaranteeing the mortgage interest rates for the loan – often at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the loan application day and issuance of closing documents. Those who opt to float presume that the interest rates will fall in the near future. Click here to see the outlook for the next 90 days of interest rates.

3 – Determine if you want to pay additional points to reduce your rate

Oftentimes you can choose to pay additional points to lower the rate of your mortgage loan. Each point is 1 percent of the mortgage loan and is payable in cash at the time of closing. If you're not sure if buying points is right for you, click here to use our points calculator.

4 – Gather your paperwork

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