Are you going to finance your new home?

When purchasing a home, applying for financing is very distressing for most people, but it doesn't have to be. Being familiar with various lending companies in the Plantsville area has helped me learn some things that can make the process of applying for a loan a snap.

1 – Put together a list of questions about your loan program

Be sure you bring a list of questions if you don't thoroughly understand the pros and cons of all the different loan programs. I or one of my lender contacts can assist you with understanding the advantages and disadvantages of both programs, because it's a challenge to understand the distinctions between fixed and adjustable rate mortgages.

2 – Determine when to lock

By locking in a rate, your mortgage lender is committing to the interest rates for the loan – typically at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between the day you apply for your loan and at the time of closing. Buyers who prefer to float presume 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 decrease your rate

When you decide to pay additional points to lower the rate of your mortgage loan, you'll do so by paying for them in cash at the time of closing. Each point is 1 percent of the mortgage loan. Click here to use our points calculator. It will help you decide if buying points is the best option for you.

4 – Compile your paperwork

Obtaining a loan requires lots of paperwork, so you should spend some time getting all your documents together. Click here to get a list of general loan documentation.

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