Are you thinking of financing a home? Perrella Realty, LLC. can help.

Applying for the loan is one of the most distressing elements of buying a home, but it doesn't have to be. Having connections with many lending companies in the Plantsville area has helped me learn some things that will make the loan application process a snap.

1 – Compose a list of questions about your loan program

Make sure to bring a list of questions if you don't completely comprehend the advantages and disadvantages of all the different programs. I or one of my trusted lenders will be able to assist you in understanding the advantages and disadvantages of each one, because it's a challenge to know the distinctions between both fixed and adjustable rate mortgages.

2 – Determine when to lock

By locking in the rate, the lender is guaranteeing the interest rates for the loan – ordinarily at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between the day you apply for the loan and at the time of closing. Buyers who elect to float presume interest rates will drop in the near future. Click here to see the outlook for the next 90 days of interest rates.

3 – Decide if you want to pay additional points to decrease your rate

If you choose to pay additional points to lower the rate of your loan, you'll do so by paying for them in cash at closing. Each point is 1 percent of the mortgage loan. To decide if you should buy points, click here to use our points calculator.

4 – Gather your paperwork

Obtaining a loan requires a lot of paperwork, so you should take some time to get all your documentation together. Click here to get a list of common loan documentation.