Coldwell Banker Plourde Real Estate can help you with financing your new home.

For a lot of people, applying for the loan is one of the more exasperating elements of buying a home, but it doesn't have to be. I'm pretty close with a lot of lending companies in Waterville, and they've helped me learn some things that will make the process of applying for a loan easy.

1 – Make a list of questions regarding your loan program

If you find that you do not completely comprehend the ins and outs of all the different programs, be sure you have a list of questions with you. I or one of my lenders will assist you with understanding the advantages and disadvantages of each program, because it's a challenge to know the characteristics of fixed and adjustable rate mortgages.

2 – Determine when to lock

By locking in the rate, the mortgage lender is committing to the mortgage 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 the loan application day and the issuing of closing documents. Buyers who decide to float conclude the interest rates will plunge 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 rate

Usually you can elect to pay additional points to lower the rate of your mortgage loan. Every point is 1 percent of the mortgage loan and is payable in cash at closing. To decide if purchasing points is right for you, click here to use our points calculator.

4 – Gather your paperwork

Getting 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 typical loan documentation.