Are you financing a home in Mechanicsville?

For a lot of people, applying for the loan is one of the most distressing elements of buying a house, but it doesn't have to be. I have a close business relationship with several lenders in Mechanicsville, and they've helped me understand a few things that will make the process of applying for a loan very easy.

1 – Assemble a list of questions regarding your loan program

If you find that you don't totally understand the pros and cons of all the various loan programs, make sure you have a list of questions with you. I or one of my trusted lenders can assist you with understanding the advantages and disadvantages of each one, because it's hard to know the characteristics of both fixed and adjustable rate mortgages.

2 – Decide when to lock

When you lock in the rate, your mortgage lender is sure to commit to the mortgage interest rates for the loan – most often at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between application and closing. Buyers who choose to float conclude that interest rates will decline 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 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. It will assist you in deciding if purchasing points is the best option for you.

4 – Compile your paperwork

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