Are you going to finance a home?

A lot of people believe applying for the mortgage loan is one of the more distressing parts of buying a house, but it doesn't have to be. I have a close business relationship with some lending companies in Tucumcari, and they've helped me realize some things that can make the loan application process pretty simple.

1 – Assemble a list of questions about your loan program

Be sure you bring a list of questions if you don't totally realize the ins and outs of all the different programs. At times, it can be hard to understand the distinctions between both fixed and adjustable rate mortgages. I or one of my lender contacts will be able to assist you with understanding the advantages and disadvantages of both.

2 – Decide when you want to lock

When you lock in the interest rate, it designates that the lender holds to the mortgage interest rates for the loan – ordinarily at the time the loan application is sent in. By floating the rate, you can lock the rate at any time between the loan application day and the issuing of closing documents. Those who opt 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 elect to pay additional points to lower the interest rate of your loan. Each point is 1 percent of the mortgage loan and is payable in cash at the time of closing. Click here to use our points calculator. This tool will help you determine if purchasing points is right for you.

4 – Compile your paperwork

Getting a loan requires lots of paperwork, so you should spend some time getting your documents together. Click here to get a list of normal loan documentation.