Are you going to finance your new home?

For a lot of people, applying for the mortgage loan is one of the most exasperating aspects of purchasing a home, but it doesn't have to be. I have a close business relationship with a lot of mortgage lenders in Waterville, and they've helped me recognize some things that can make the loan application process a breeze.

1 – Organize a list of questions regarding your loan program

Make sure to have a list of questions if you find that you don't completely realize the pros and cons of all the different loan programs. It is a challenge to know the differences between fixed and adjustable rate mortgages. I or one of my lender contacts will assist you in understanding the advantages and disadvantages of each one.

2 – Determine when you want to lock

By locking in the rate, the mortgage lender is keeping to the interest rates for the loan – generally at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the day you apply for the loan and the issuing of closing documents. Buyers who choose to float believe the interest rates will dip 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 lower your rate

Generally you can elect to pay additional points to lower the rate of your mortgage loan. Each point is 1 percent of the loan and is payable in cash at closing. Click here to use our points calculator. It will help you determine if buying points is right for you.

4 – Bring your paperwork

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