Applying for a loan

For many people, applying for financing is one of the more demanding elements of purchasing a home, but it doesn't have to be. I have a close relationship with several mortgage lenders in the Carthage area, and they've helped me recognize a few things that make the process of applying for a loan very easy.

1 – Assemble a list of questions regarding your loan program

Be sure you have a list of questions if you don't completely realize the advantages and disadvantages of all the various programs. At times, it can be a challenge to understand the distinctions between fixed and adjustable rate mortgages. I or one of my lenders will be able to assist you with understanding the advantages and disadvantages of both.

2 – Determine when to lock

By locking in the interest rate, the mortgage lender is holding to the mortgage interest rates for the loan – ordinarily at the time the loan application is presented. By floating the rate, you can lock the rate anytime between the day you apply for your loan and at the time of closing. Those who decide to float conclude that 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 reduce your rate

Usually you can choose to pay additional points to lower the interest rate of your 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 decide if purchasing points is the best option for you.

4 – Gather your paperwork

Obtaining a loan requires lots of paperwork, so you should take some time to get your documents together. Click here for a list of normal loan documentation.