Applying for a new home loan with help from Coldwell Banker Plourde Real Estate

Applying for financing can be one of the most exasperating parts of purchasing a home, but it doesn't have to be. Having connections to many lenders in Waterville has helped me learn some things that will make the loan application process very manageable.

1 – Assemble a list of questions about your loan program

If you find that you do not entirely realize the ins and outs of all the different loan programs, make sure to bring a list of questions with you. It can be a challenge to know the differences between both fixed and adjustable rate mortgages. I or one of my lender contacts will be able to assist you with understanding the advantages and disadvantages of each program.

2 – Decide when you want to lock

When you lock in the interest rate, the lender is sure to commit to the mortgage interest rates for the loan – generally at the time the loan application is received. By floating the rate, you can lock the rate anytime between the day you apply for the loan and closing. Buyers who elect to float presume interest rates will plunge 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

When you opt to pay additional points to lower the interest rate of your mortgage loan, you'll pay for them in cash at the time of closing. Every point is 1 percent of the mortgage loan. Click here to use our points calculator. This tool will assist you in deciding if buying points is right for you.

4 – Compile your paperwork

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