Are you thinking of financing your home? McElroy & Associates can help.

Applying for financing can be one of the most stressful aspects of buying a home, but it doesn't have to be. I'm well-connected to several mortgage lenders in Tucumcari, and they've helped me understand some things that will make the loan application process a breeze.

1 – Compile a list of questions regarding your loan program

Make sure you bring a list of questions with you if you find that you don't completely realize the pros and cons of all the various programs. Oftentimes, it can be hard to understand the characteristics of fixed and adjustable rate mortgages. I or one of my lenders will help you understand the advantages and disadvantages of each one.

2 – Determine when to lock

Locking in denotes that a lender keeps to the mortgage interest rates for the loan – often at the time the loan application is presented. By floating the rate, you can lock the rate anytime between application and at the time of closing. Those who opt to float think that the interest rates will plunge 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 rate

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

4 – Gather your paperwork

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