Do you wish to finance your new home in Tucumcari? McElroy & Associates can help.

When buying a home, applying for the mortgage loan is a troublesome event for a lot of people, but it doesn't have to be. I have a close relationship with several mortgage lenders in Tucumcari, and they've helped me learn a few things that can make the process of applying for a loan a snap.

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

If you find that you don't entirely realize the advantages and disadvantages of all the various loan programs, make sure to bring a list of questions. I or one of my lender contacts will help you understand the advantages and disadvantages of each one, because it can be a challenge to understand the differences 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 – generally at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the day of your loan application and at the time of closing. Buyers who elect to float presume 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 reduce your rate

When you choose to pay additional points to lower the rate of your mortgage loan, you will 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 decide if purchasing points is right for you.

4 – Gather your paperwork

Obtaining a loan requires a lot of paperwork, so you should spend some time getting all your documentation together. Click here to get a list of normal loan documentation.