Applying for your new home loan

Applying for a mortgage loan can be one of the most exasperating parts of purchasing a home for a buyer, but it doesn't have to be. Having connections with several lending companies in Plantsville has helped me learn some things that make the process of applying for a loan a breeze.

1 – Organize a list of questions about your loan program

If you do not perfectly comprehend the advantages and disadvantages of the different loan programs, be sure to have a list of questions. I or one of my lender contacts will assist you with understanding the advantages and disadvantages of each program, because it can be a challenge to know the distinctions between both fixed and adjustable rate mortgages.

2 – Determine when to lock

When you lock in a rate, the lender is guaranteed to hold to the mortgage interest rates for the loan – often at the time the loan application is received. By floating the rate, you can lock the rate at any time between the day you apply for your loan and issuance of closing documents. Buyers who prefer to float believe the interest rates will decline 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 reduce your interest rate

Typically you can elect to pay additional points to lower the interest rate of your mortgage loan. Every point is 1 percent of the loan and is payable in cash at the time of closing. If you're undecided as to whether or not purchasing points is right for you, click here to use our points calculator.

4 – Bring your paperwork

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