Are you financing your new home?

Applying for the loan can be one of the most distressing parts of purchasing a home, but it doesn't have to be. I have a close relationship with a lot of lenders in Carthage, and they've helped me learn a few things that make the process of applying for a loan a breeze.

1 – Organize a list of questions about your loan program

Make sure to have a list of questions with you if you find that you don't fully realize the advantages and disadvantages of the various programs. I or one of my lenders will assist you in understanding the advantages and disadvantages of each program, because it's hard to know the characteristics of fixed and adjustable rate mortgages.

2 – Decide when you want to lock

Locking in an interest rate designates that a mortgage lender keeps to the mortgage interest rates for the loan – normally at the time the loan application is presented. By floating the rate, you can lock the rate anytime between the day you apply for the loan and the issuing of closing documents. Buyers who decide to float presume that the interest rates will fall 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

If you opt to pay additional points to lower the rate of your mortgage loan, you'll pay for them in cash at the time of closing. Every point is 1 percent of the mortgage loan. If you're undecided on whether or not purchasing points is the best option for you, click here to use our points calculator.

4 – Compile your paperwork

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