Are you going to finance a home?

For many people, applying for mortgage financing is one of the more exasperating elements of buying a home, but it doesn't have to be. Being connected with many lending companies in the Plantsville area has helped me understand some things that will make the loan application process a breeze.

1 – Compile a list of questions about your loan program

Be sure to bring a list of questions if you find that you don't entirely understand the advantages and disadvantages of all the various loan programs. I or one of my lender contacts will be able to help you understand the advantages and disadvantages of both programs, because it can be a challenge to understand the characteristics of fixed and adjustable rate mortgages.

2 – Decide when you want to lock

When you lock in the rate, a lender is guaranteed to commit to the interest rates for the loan – normally at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the day of your loan application and at the time of closing. Buyers who opt to float presume 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 decrease your interest rate

Typically you can choose 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. Click here to use our points calculator. This tool will assist you with determining if purchasing points is the best option for you.

4 – Bring your paperwork

Acquiring a loan requires a lot of paperwork, so you should spend some time getting your documents together. Click here for a list of general loan documentation.