Thinking of financing a new home? David Massey Real Estate can help.

When purchasing a home, applying for the mortgage loan is very troublesome for a lot of people, but it doesn't have to be. I have a close relationship with a lot of lenders in the Burlington area, and they've helped me recognize a few things that will make the loan application process a breeze.

1 – Organize a list of questions about your loan program

If you don't totally realize the pros and cons of the different programs, be sure you have a list of questions. Oftentimes, it can be hard to know the characteristics of both fixed and adjustable rate mortgages. I or one of my lender contacts will be able to assist you with understanding the advantages and disadvantages of each.

2 – Decide when you want to lock

When you lock in a rate, it means that a lender holds to the mortgage interest rates for the loan – typically at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between the day you apply for the loan and at the time of closing. Buyers who decide to float believe that the interest rates will drop 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

If you opt to pay additional points to lower the rate of your mortgage loan, you will pay 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 assist you with determining if purchasing points is the best option for you.

4 – Compile your paperwork

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