Are you financing your new home?

Applying for the mortgage loan is one of the most exasperating aspects of buying a house for a buyer, but it doesn't have to be. I have a close business relationship with a lot of mortgage lenders in the Burlington area, and they've helped me realize some things that make the loan application process much easier.

1 – Compose a list of questions regarding your loan program

If you find that you do not completely comprehend the advantages and disadvantages of the various programs, make sure you bring a list of questions. I or one of my trusted lenders will be able to assist you with understanding the advantages and disadvantages of each one, because it's a challenge to know the differences between both fixed and adjustable rate mortgages.

2 – Determine when to lock

By locking in a rate, your mortgage lender is keeping to the 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 issuance of closing documents. Those who prefer to float conclude that 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 lower your interest rate

Typically you can opt to pay additional points to lower the interest rate of your loan. Each point is 1 percent of the loan and is payable in cash at the time of closing. Click here to use our points calculator. It will assist you with determining if buying points is right for you.

4 – Compile your paperwork

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