Are you financing your home?

When buying a home, applying for a loan is very stressful for most people, but it doesn't have to be. I'm pretty connected with some mortgage lenders in the Needham area, and they've helped me learn a few things that make the loan application process effortless.

1 – Organize a list of questions about your loan program

If you find that you don't completely understand the ins and outs of all the various programs, be sure you bring a list of questions. It is often a challenge to understand the characteristics of fixed and adjustable rate mortgages. I or one of my lender contacts will assist you with understanding the advantages and disadvantages of both programs.

2 – Decide when to lock

When you lock in the interest rate, it means that a lender keeps to the mortgage interest rates for the loan – typically at the time the loan application is received. By floating the rate, you can lock the rate anytime between application and the issuing of closing documents. Those who elect 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 reduce your interest rate

Oftentimes you can opt to pay additional points to lower the interest rate of your loan. Every point is 1 percent of the mortgage loan and is payable in cash at the time of closing. To decide if you should purchase points, click here to use our points calculator.

4 – Gather your paperwork

Acquiring 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 typical loan documentation.