Thinking of financing a home in Waterville?

When purchasing a home, applying for a loan is a distressing event for most people, but it doesn't have to be. I have a close relationship with several lenders in the Waterville area, and they've helped me understand some things that can make the process of applying for a loan a snap.

1 – Create a list of questions regarding your loan program

Make sure you have a list of questions if you find that you do not completely understand the ins and outs of the various programs. I or one of my lender contacts will assist you with understanding the advantages and disadvantages of both programs, because it can be hard to know the differences between fixed and adjustable rate mortgages.

2 – Determine when to lock

When you lock in the rate, it designates that your mortgage lender guarantees the interest rates for the loan – ordinarily at the time the loan application is sent in. By floating the rate, you can lock the rate at any time between the day of your loan application and closing. Buyers who prefer to float think that interest rates will drop 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 interest rate

When you choose to pay additional points to lower the rate of your loan, you'll do so by paying for them in cash at closing. Every point is 1 percent of the loan. To decide if you should buy points, click here to use our points calculator.

4 – Gather your paperwork

Acquiring a mortgage loan requires lots of paperwork, so you should take some time to get your documentation together. Click here to get a list of general loan documentation.