Are you going to finance your home? Coldwell Banker Plourde Real Estate can help.

When purchasing a home, applying for a loan is distressing for many people, but it doesn't have to be. I'm pretty well-connected to a lot of lenders in Waterville, and they've helped me recognize some things that will make the process of applying for a loan pretty simple.

1 – Assemble a list of questions regarding your loan program

If you find that you don't fully realize the advantages and disadvantages of all the various loan programs, make sure to have a list of questions. Oftentimes, it can be a challenge to know the distinctions between both fixed and adjustable rate mortgages. I or one of my lenders can assist you with understanding the advantages and disadvantages of both.

2 – Determine when you want to lock

By locking in the rate, your lender is holding to the interest rates for the loan – commonly at the time the loan application is sent in. By floating the rate, you can lock the rate anytime between the day of your loan application and the issuing of closing documents. Buyers who elect to float presume that the 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 opt 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. To decide if you should purchase points, click here to use our points calculator.

4 – Compile your paperwork

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