Thinking of financing your new home?

Many people think that applying for mortgage financing is one of the most stressful aspects of buying a house, but it doesn't have to be. I'm pretty well-connected to various lending companies in the Waterville area, and they've helped me realize some things that will make the loan application process very manageable.

1 – Compose a list of questions regarding your loan program

If you find that you don't perfectly comprehend the ins and outs of all the different programs, make sure to bring a list of questions. I or one of my lenders will assist you with understanding the advantages and disadvantages of both programs, because it is a challenge to know the distinctions between both fixed and adjustable rate mortgages.

2 – Determine when to lock

When you lock in an interest rate, it indicates that the mortgage lender commits to the mortgage interest rates for the loan – often at the time the loan application is sent in. By floating the rate, you can lock the rate anytime between application and closing. Buyers who decide 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 – Decide if you want to pay additional points to lower your interest rate

If you choose to pay additional points to lower the rate of your loan, you'll pay for them in cash at the time of closing. Each point is 1 percent of the mortgage loan. Click here to use our points calculator. It will help you determine if buying points is right for you.

4 – Compile your paperwork

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