Are you going to finance a new home?

When buying a home, applying for a loan is very distressing for many people, but it doesn't have to be. I'm pretty close to various lending companies in the Mechanicsville area, and they've helped me recognize some things that will make the loan application process uncomplicated.

1 – Create a list of questions about your loan program

Be sure you bring a list of questions if you don't totally understand the ins and outs of all the different loan programs. I or one of my lenders will assist you in understanding the advantages and disadvantages of both programs, because it's hard to understand the differences between fixed and adjustable rate mortgages.

2 – Decide when to lock

When you lock in a rate, it denotes that the mortgage lender holds to the mortgage interest rates for the loan – typically at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the day you apply for your loan and closing. Those who choose to float believe 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 lower your interest rate

If you opt to pay additional points to lower the interest rate of your loan, you'll do so by paying for them in cash at closing. Each point is 1 percent of the loan. Click here to use our points calculator. It will help you decide 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 your documents together. Click here for a list of typical loan documentation.