Applying for a loan with help from Lighthouse Realty, Inc.

When purchasing a home, applying for the mortgage loan is very distressing for many people, but it doesn't have to be. Having connections to many mortgage lenders in the Mechanicsville area has helped me realize a few things that will make the loan application process uncomplicated.

1 – Make a list of questions regarding your loan program

Be sure to bring a list of questions with you if you do not completely understand the pros and cons of the different loan programs. I or one of my trusted lenders will be able to assist you in understanding the advantages and disadvantages of each program, because it's a challenge to know the characteristics of fixed and adjustable rate mortgages.

2 – Decide when you want to lock

By locking in the rate, your mortgage lender is keeping to the interest rates for the loan – commonly 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 your loan and at the time of closing. Those who opt to float presume 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 reduce your rate

When you choose to pay additional points to lower the rate of your loan, you'll do so by paying for them in cash at the time of closing. Each point is 1 percent of the mortgage loan. Click here to use our points calculator. This tool will help you determine if purchasing points is right for you.

4 – Bring your paperwork

Acquiring a loan requires lots of paperwork, so you should spend some time getting your documentation together. Click here for a list of common loan documentation.