Are you financing your new home in Burlington?

For a lot of people, applying for the loan can be one of the more distressing parts of purchasing a home, but it doesn't have to be. Being familiar with various lending companies in the Burlington area has helped me realize a few things that can make the process of applying for a loan very manageable.

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

Be sure to have a list of questions if you find that you don't totally comprehend the pros and cons of the different loan programs. I or one of my trusted lenders will assist you in understanding the advantages and disadvantages of each one, because it's hard to know the differences between fixed and adjustable rate mortgages.

2 – Decide when to lock

Locking in means that the lender holds to the interest rates for the loan – commonly at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the day you apply for the loan and the issuing of closing documents. Buyers who decide to float presume 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

Generally you can elect to pay additional points to lower the interest rate of your mortgage loan. Each point is 1 percent of the mortgage loan and is payable in cash at the time of closing. If you're uncertain if purchasing points is the best option for you, click here to use our points calculator.

4 – Gather your paperwork

Acquiring a loan requires a lot of paperwork, so you should spend some time getting your documents together. Click here for a list of normal loan documentation.