Are you thinking about financing your new home?

Applying for financing can be one of the most distressing aspects of purchasing a home for a buyer, but it doesn't have to be. Being close to a lot of mortgage lenders in the Mechanicsville area has helped me recognize a few things that will make the process of applying for a loan very easy.

1 – Organize a list of questions regarding your loan program

If you find that you do not thoroughly comprehend the advantages and disadvantages of all the different loan programs, be sure you bring a list of questions. I or one of my trusted lenders can help you understand the advantages and disadvantages of both programs, because it can be hard to know the characteristics of fixed and adjustable rate mortgages.

2 – Determine when to lock

When you lock in the interest rate, the mortgage lender is sure to keep to the interest rates for the loan – typically at the time the loan application is received. By floating the rate, you can lock the rate anytime between the day of your loan application and at the time of closing. Those who choose to float presume interest rates will dip 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

Generally you can decide to pay additional points to lower the rate of your loan. Every point is 1 percent of the loan and is payable in cash at the time of closing. Click here to use our points calculator. This tool will assist you in deciding if buying points is right for you.

4 – Bring your paperwork

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