Are you financing your new home in Tucumcari? McElroy & Associates can help.

When buying a home, applying for financing is stressful for most people, 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 recognize a few things that make the loan application process easy.

1 – Compile a list of questions about your loan program

Be sure you bring a list of questions if you don't entirely understand the pros and cons of all the different programs. I or one of my lender contacts will help you understand the advantages and disadvantages of each one, because it is a challenge to understand the distinctions between fixed and adjustable rate mortgages.

2 – Decide when you want to lock

When you lock in the rate, your mortgage lender is sure to commit to the mortgage interest rates for the loan – ordinarily at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between the loan application day and the issuing of closing documents. Those who choose to float conclude that interest rates will plunge 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

If you opt to pay additional points to lower the interest rate of your loan, you will pay for them in cash at the time of closing. Each point is 1 percent of the loan. Click here to use our points calculator. This tool will help you determine if purchasing points is the best option for you.

4 – Compile your paperwork

Obtaining a mortgage 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.