Thinking about financing a home? McElroy & Associates can help.

A lot of buyers believe applying for the mortgage loan is one of the more distressing elements of purchasing a house, but it doesn't have to be. Being close with various mortgage lenders in Tucumcari has helped me realize some things that will make the loan application process uncomplicated.

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

Be sure you have a list of questions with you if you find that you don't completely comprehend the pros and cons of the various loan programs. I or one of my lenders will be able to assist you in understanding the advantages and disadvantages of each program, because it's hard to understand the differences between both fixed and adjustable rate mortgages.

2 – Determine when to lock

Locking in the rate indicates that a mortgage lender commits to the mortgage interest rates for the loan – often at the time the loan application is sent in. By floating the rate, you can lock the rate anytime between the loan application day and at the time of closing. Buyers who choose to float think that interest rates will decline 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 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 the time of closing. Click here to use our points calculator. This tool will help you decide if purchasing points is right for you.

4 – Gather your paperwork

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