Are you financing your new home in Mechanicsville? Lighthouse Realty, Inc. can help.

Applying for the loan can be one of the most stressful elements of buying a home, but it doesn't have to be. I'm pretty well-connected to a lot of lending companies in Mechanicsville, and they've helped me understand a few things that make the process of applying for a loan very manageable.

1 – Put together a list of questions regarding your loan program

Be sure to have a list of questions with you if you find that you don't perfectly comprehend the advantages and disadvantages of the different programs. At times, it can be hard to understand the differences between both fixed and adjustable rate mortgages. I or one of my lender contacts will help you understand the advantages and disadvantages of each.

2 – Decide when you want to lock

When you lock in the rate, the mortgage lender is guaranteed to keep 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 anytime between application and at the time of closing. Those who decide to float conclude 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 decrease your rate

Oftentimes you can elect to pay additional points to lower the rate of your mortgage loan. Every point is 1 percent of the mortgage loan and is payable in cash at closing. Click here to use our points calculator. This tool will help you determine if buying points is right for you.

4 – Bring your paperwork

Acquiring a mortgage loan requires lots of paperwork, so you should take some time to get your documentation together. Click here for a list of typical loan documentation.