Thinking of financing your new home?

Applying for financing can be one of the most troublesome aspects of buying a house, but it doesn't have to be. I'm well-connected to several lending companies in Tucumcari, and they've helped me recognize some things that make the loan application process a breeze.

1 – Make a list of questions about your loan program

Be sure to have a list of questions if you find that you don't totally realize the advantages and disadvantages of the different programs. It is often a challenge to know the characteristics of both fixed and adjustable rate mortgages. I or one of my lender contacts can help you understand the advantages and disadvantages of both.

2 – Determine when you want to lock

When you lock in a rate, your mortgage lender is guaranteed to hold 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 loan application day and issuance of closing documents. Those who opt to float think interest rates will dip 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 reduce your rate

If you opt to pay additional points to lower the interest rate of your mortgage loan, you'll do so by paying for them in cash at the time of closing. Every point is 1 percent of the mortgage loan. Click here to use our points calculator. It will help you determine if buying points is right for you.

4 – Bring your paperwork

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