Applying for a new home loan

A lot of people believe that applying for a loan is one of the more distressing parts of purchasing a house, but it doesn't have to be. I'm connected to several mortgage lenders in Needham, and they've helped me learn a few things that can make the loan application process a breeze.

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

Make sure you bring a list of questions with you if you don't thoroughly realize the pros and cons of all the various loan programs. It can be hard to understand the differences between both fixed and adjustable rate mortgages. I or one of my trusted lenders will help you understand the advantages and disadvantages of each program.

2 – Determine when to lock

By locking in the rate, the lender is guaranteeing the mortgage interest rates for the loan – typically at the time the loan application is sent in. By floating the rate, you can lock the rate at any time between the day of your loan application and issuance of closing documents. Those who decide to float believe that interest rates will fall 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 decrease your interest rate

Normally you can opt to pay additional points to lower the rate of your mortgage loan. Every 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 help you decide if purchasing points is right for you.

4 – Gather your paperwork

Getting a loan requires lots of paperwork, so you should take some time to get your documentation together. Click here for a list of general loan documentation.