McElroy & Associates can assist you with applying for your home loan.

Applying for a mortgage loan can be one of the most troublesome elements of purchasing a house, but it doesn't have to be. I have a close business relationship with a lot of lenders in the Tucumcari area, and they've helped me realize a few things that make the loan application process much easier.

1 – Organize a list of questions regarding your loan program

Make sure you bring a list of questions with you if you don't totally understand the advantages and disadvantages of the various loan programs. I or one of my lender contacts will be able to assist you in understanding the advantages and disadvantages of each one, because it can be hard to understand the distinctions between fixed and adjustable rate mortgages.

2 – Decide when to lock

By locking in a rate, the mortgage lender is keeping to the mortgage 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 application and closing. Buyers who opt to float think 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 decrease your rate

When you decide to pay additional points to lower the interest rate of your loan, you will pay for them in cash at the time of closing. Every point is 1 percent of the loan. Click here to use our points calculator. This tool will assist you with determining if purchasing points is the best option for you.

4 – Bring your paperwork

Obtaining a loan requires a lot of paperwork, so you should take some time to get your documents together. Click here for a list of normal loan documentation.