Thinking of financing your new home in Mechanicsville? Lighthouse Realty, Inc. can help.

Applying for a loan is one of the most exasperating parts of purchasing a home, but it doesn't have to be. I'm pretty well-connected to various mortgage lenders in Mechanicsville, and they've helped me understand a few things that will make the loan application process very manageable.

1 – Assemble a list of questions about your loan program

Be sure you have a list of questions with you if you don't completely comprehend the pros and cons of the various programs. I or one of my trusted lenders will be able to help you understand the advantages and disadvantages of each one, because it's a challenge to know the distinctions between both fixed and adjustable rate mortgages.

2 – Decide when you want to lock

Locking in an interest rate indicates that your lender holds to the mortgage interest rates for the loan – ordinarily at the time the loan application is presented. By floating the rate, you can lock the rate anytime between the loan application day and the issuing of closing documents. Buyers who prefer to float conclude that the 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 decrease your interest rate

Usually you can choose to pay additional points to lower the interest rate of your loan. Every 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 – Bring your paperwork

Acquiring a 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.