Do you wish to finance a new home in Waterville? Coldwell Banker Plourde Real Estate can help.

A lot of buyers think that applying for financing is one of the most distressing aspects of purchasing a house, but it doesn't have to be. I have a close business relationship with several lending companies in Waterville, and they've helped me recognize a few things that will make the process of applying for a loan easy.

1 – Create a list of questions about your loan program

Be sure you bring a list of questions if you don't totally realize the advantages and disadvantages of the various loan programs. Oftentimes, it can be a challenge understanding the characteristics of both fixed and adjustable rate mortgages. I or one of my trusted lenders will assist you with understanding the advantages and disadvantages of each program.

2 – Decide when to lock

By locking in a rate, a lender is keeping to the interest rates for the loan – commonly at the time the loan application is received. By floating the rate, you can lock the rate at any time between application and issuance of closing documents. Buyers who prefer to float think that interest rates will decline 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 decrease your interest rate

When you decide to pay additional points to lower the rate of your loan, you will do so by paying for them in cash at closing. Each point is 1 percent of the loan. Click here to use our points calculator. This tool will assist you with determining if purchasing points is right for you.

4 – Compile your paperwork

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