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

When buying a home, applying for a loan is demanding for a lot of people, but it doesn't have to be. Having connections with several lending companies in Tucumcari has helped me recognize a few things that can make the process of applying for a loan effortless.

1 – Compose a list of questions about your loan program

If you don't completely comprehend the ins and outs of the various loan programs, make sure to bring a list of questions. At times, it can be a challenge understanding the differences between fixed and adjustable rate mortgages. I or one of my trusted lenders will help you understand the advantages and disadvantages of both programs.

2 – Decide when to lock

Locking in a rate means that your lender holds to the interest rates for the loan – usually at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the day you apply for the loan and at the time of closing. Buyers who opt to float believe the 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 decrease your rate

When you opt to pay additional points to lower the interest rate of your mortgage loan, you will pay for them in cash at the time of closing. Every point is 1 percent of the loan. To decide if you should purchase points, click here to use our points calculator.

4 – Gather your paperwork

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