Are you thinking of financing a home in Tucumcari? McElroy & Associates can help.

Applying for mortgage financing can be one of the most demanding parts of buying a home, but it doesn't have to be. Having connections with some lending companies in Tucumcari has helped me realize some things that will make the loan application process uncomplicated.

1 – Assemble a list of questions about your loan program

If you do not thoroughly understand the pros and cons of the various loan programs, be sure to bring a list of questions with you. I or one of my lenders will help you understand the advantages and disadvantages of each program, because it's hard to understand the differences between fixed and adjustable rate mortgages.

2 – Decide when to lock

When you lock in the interest rate, it signifies that the lender holds to the interest rates for the loan – often at the time the loan application is presented. By floating the rate, you can lock the rate anytime between the day you apply for your loan and the issuing of closing documents. Those who choose to float conclude the interest rates will drop in the near future. Click here to see the outlook for the next 90 days of interest rates.

3 – Decide if you want to pay additional points to lower your rate

Generally you can choose to pay additional points to lower the interest rate of your loan. Each point is 1 percent of the loan and is payable in cash at closing. Click here to use our points calculator. This tool will assist you in determining if purchasing points is the best option for you.

4 – Bring your paperwork

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