Thinking of financing your new home in Tucumcari? McElroy & Associates can help.

For many people, applying for a loan is one of the most demanding elements of purchasing a house, but it doesn't have to be. I have a close relationship with various lending companies in the Tucumcari area, and they've helped me learn some things that make the process of applying for a loan a snap.

1 – Put together a list of questions regarding your loan program

If you do not fully comprehend the pros and cons of the various programs, make sure to bring a list of questions. I or one of my lender contacts will assist you with understanding the advantages and disadvantages of each one, because it's hard to know the characteristics of fixed and adjustable rate mortgages.

2 – Determine when you want to lock

By locking in the interest rate, your lender is holding to the mortgage interest rates for the loan – most often at the time the loan application is sent in. By floating the rate, you can lock the rate at any time between the day you apply for the loan and the issuing of closing documents. Buyers who elect to float think that the interest rates will decline 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 interest rate

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

4 – Bring your paperwork

Obtaining a mortgage loan requires lots of paperwork, so you should spend some time getting all your documentation together. Click here for a list of common loan documentation.