Are you financing a new home in Needham?

Applying for financing can be one of the most distressing aspects of purchasing a house, but it doesn't have to be. Having connections with various lenders in the Needham area has helped me recognize a few things that can make the loan application process very manageable.

1 – Create a list of questions about your loan program

If you do not entirely realize the ins and outs of all the different loan programs, make sure you bring a list of questions with you. I or one of my lender contacts will help you understand the advantages and disadvantages of each program, because it can be hard to understand the distinctions between fixed and adjustable rate mortgages.

2 – Decide when to lock

When you lock in an interest rate, it designates that your mortgage lender keeps to the interest rates for the loan – usually at the time the loan application is received. By floating the rate, you can lock the rate at any time between application and issuance of closing documents. Those who prefer to float presume that interest rates will plunge 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 mortgage loan. Every point is 1 percent of the loan and is payable in cash at closing. Click here to use our points calculator. This tool will help you determine if buying points is right for you.

4 – Compile your paperwork

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