Are you going to finance your home in Mechanicsville? Lighthouse Realty, Inc. can help.

For many people, applying for a loan can be one of the more stressful parts of purchasing a home, but it doesn't have to be. I'm very familiar with various lenders in the Mechanicsville area, and they've helped me learn a few things that can make the process of applying for a loan effortless.

1 – Assemble a list of questions regarding your loan program

If you find that you do not perfectly realize the pros and cons of all the various loan programs, make sure you bring a list of questions. It can be hard to know the differences between fixed and adjustable rate mortgages. I or one of my lender contacts can assist you with understanding the advantages and disadvantages of each program.

2 – Determine when to lock

When you lock in an interest rate, it means that a mortgage lender commits to the mortgage interest rates for the loan – generally at the time the loan application is presented. By floating the rate, you can lock the rate anytime between the day you apply for the loan and issuance of closing documents. Those who choose to float conclude that 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 reduce your rate

Generally you can elect to pay additional points to lower the rate of your mortgage loan. Each point is 1 percent of the mortgage loan and is payable in cash at the time of closing. Click here to use our points calculator. This tool will help you determine if buying points is right for you.

4 – Compile your paperwork

Acquiring a mortgage 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 typical loan documentation.