Are you going to finance your home? McElroy & Associates can help.

When buying a home, applying for the loan is a stressful event for many people, but it doesn't have to be. I'm pretty familiar with several lending companies in the Tucumcari area, and they've helped me realize some things that will make the loan application process effortless.

1 – Make a list of questions regarding your loan program

If you find that you don't entirely realize the pros and cons of the various loan programs, be sure to have a list of questions. Oftentimes, it can be a challenge understanding the characteristics of both fixed and adjustable rate mortgages. I or one of my lender contacts will help you understand the advantages and disadvantages of both programs.

2 – Decide when to lock

Locking in a rate denotes that a mortgage lender commits to the interest rates for the loan – commonly at the time the loan application is presented. By floating the rate, you can lock the rate anytime between the loan application day and the issuing of closing documents. Buyers who decide to float believe that 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 interest rate

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

4 – Compile your paperwork

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