Applying for a loan

When buying a home, applying for the mortgage loan is a stressful event for most people, but it doesn't have to be. I'm well-connected with many lenders in Tucumcari, and they've helped me understand a few things that will make the process of applying for a loan a breeze.

1 – Compile a list of questions regarding your loan program

Make sure you have a list of questions with you if you don't totally realize the pros and cons of the different programs. Oftentimes, it can be a challenge to know the differences between fixed and adjustable rate mortgages. I or one of my trusted lenders can assist you in understanding the advantages and disadvantages of each program.

2 – Decide when you want to lock

When you lock in the rate, it signifies that the mortgage lender guarantees the mortgage interest rates for the loan – most often at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the day of your loan application and issuance of closing documents. Buyers who elect to float conclude interest rates will fall 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 choose 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 closing. To determine if purchasing points is the best option for you, click here to use our points calculator.

4 – Bring your paperwork

Getting a mortgage loan requires lots of paperwork, so you should take some time to get all your documentation together. Click here to get a list of common loan documentation.