Thinking of financing a home in Waterville?

Applying for the loan can be one of the most exasperating parts of purchasing a house, but it doesn't have to be. I have a close business relationship with some mortgage lenders in the Waterville area, and they've helped me learn a few things that can make the loan application process a breeze.

1 – Create a list of questions regarding your loan program

If you do not perfectly understand the pros and cons of the various loan programs, make sure you bring a list of questions with you. I or one of my lender contacts can help you understand the advantages and disadvantages of each program, because it can be hard to know the characteristics of fixed and adjustable rate mortgages.

2 – Determine when you want to lock

When you lock in the interest rate, your mortgage lender is sure to commit to the interest rates for the loan – commonly at the time the loan application is sent in. By floating the rate, you can lock the rate at any time between application and at the time of closing. Those who opt to float believe that interest rates will dip 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 lower your interest rate

Typically you can elect to pay additional points to lower the interest rate of your loan. Each point is 1 percent of the loan and is payable in cash at 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 lots of paperwork, so you should take some time to get your documentation together. Click here for a list of general loan documentation.