Applying for a new home loan

When buying a home, applying for a loan is very demanding for a lot of people, but it doesn't have to be. I'm pretty connected with a lot of mortgage lenders in the Carthage area, and they've helped me realize a few things that can make the process of applying for a loan effortless.

1 – Compile a list of questions about your loan program

Make sure you bring a list of questions with you if you find that you do not fully understand the ins and outs of all the various loan programs. I or one of my lenders can help you understand the advantages and disadvantages of both programs, because it is hard to understand the distinctions between fixed and adjustable rate mortgages.

2 – Decide when you want to lock

By locking in the rate, your mortgage lender is holding to the mortgage interest rates for the loan – usually at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the loan application day and closing. Those who opt to float presume 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 lower your rate

Normally you can elect to pay additional points to lower the interest rate of your loan. Each point is 1 percent of the mortgage loan and is payable in cash at closing. If you're not sure if purchasing points is the best option for you, click here to use our points calculator.

4 – Bring your paperwork

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