Do you want to finance your home?

Most people think that applying for financing is one of the most exasperating parts of purchasing a house, but it doesn't have to be. Being close with a lot of lenders in Mechanicsville has helped me understand a few things that make the process of applying for a loan very manageable.

1 – Compile a list of questions regarding your loan program

Make sure to bring a list of questions if you don't perfectly realize the pros and cons of all the various programs. It's a challenge understanding the characteristics of fixed and adjustable rate mortgages. I or one of my lender contacts will help you understand the advantages and disadvantages of each program.

2 – Decide when you want to lock

When you lock in the interest rate, your mortgage lender is sure to keep to the mortgage interest rates for the loan – ordinarily at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the day you apply for the loan and at the time of closing. Buyers who prefer to float think that interest rates will plunge 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 interest rate

Oftentimes you can decide to pay additional points to lower the rate of your mortgage loan. Each point is 1 percent of the loan and is payable in cash at closing. If you're not sure if purchasing points is the best option for you, click here to use our points calculator.

4 – Gather your paperwork

Acquiring a loan requires a lot of paperwork, so you should take some time to get all your documents together. Click here to get a list of typical loan documentation.