Do you wish to finance a home?

Applying for a mortgage loan can be one of the most exasperating aspects of purchasing a home for a buyer, but it doesn't have to be. I'm pretty close with several lenders in the Mechanicsville area, and they've helped me realize some things that can make the process of applying for a loan very easy.

1 – Compile a list of questions about your loan program

Make sure to have a list of questions if you don't fully realize the ins and outs of all the different programs. I or one of my lender contacts will be able to assist you with understanding the advantages and disadvantages of each one, because it is a challenge to understand the distinctions between fixed and adjustable rate mortgages.

2 – Decide when you want to lock

When you lock in the interest rate, a mortgage lender is sure to hold to the mortgage interest rates for the loan – commonly at the time the loan application is sent in. By floating the rate, you can lock the rate at any time between the loan application day and the issuing of closing documents. Those who elect to float conclude interest rates will drop 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 lower your interest rate

Usually you can choose to pay additional points to lower the interest rate of your mortgage loan. Each point is 1 percent of the loan and is payable in cash at the time of closing. If you're undecided on whether or not buying points is the best option for you, click here to use our points calculator.

4 – Compile your paperwork

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