Coldwell Banker Plourde Real Estate can assist you in financing a home in Waterville.

When buying a home, applying for a loan is a very stressful event for a lot of people, but it doesn't have to be. I have a close business relationship with some lending companies in Waterville, and they've helped me understand some things that make the process of applying for a loan uncomplicated.

1 – Compile a list of questions about your loan program

If you do not perfectly realize the ins and outs of all the different programs, be sure to have a list of questions with you. I or one of my lender contacts will be able to help you understand the advantages and disadvantages of each program, because it is a challenge to understand the differences between fixed and adjustable rate mortgages.

2 – Decide when to lock

By locking in an interest rate, a mortgage lender is committing to the interest rates for the loan – most often at the time the loan application is presented. By floating the rate, you can lock the rate anytime between the day you apply for your loan and closing. Buyers who choose to float think 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 decrease your rate

When you opt 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. Each point is 1 percent of the loan. Click here to use our points calculator. It will help you decide if buying points is the best option for you.

4 – Compile your paperwork

Acquiring a loan requires lots of paperwork, so you should spend some time getting all your documentation together. Click here to get a list of common loan documentation.