Are you going to finance your new home?

When purchasing a home, applying for a loan is a very demanding event for many people, but it doesn't have to be. Being connected with several mortgage lenders in Needham has 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

Be sure to have a list of questions if you find that you don't fully comprehend the ins and outs of all the various loan programs. I or one of my lender contacts can assist you with understanding the advantages and disadvantages of each one, because it is hard to understand the characteristics of fixed and adjustable rate mortgages.

2 – Decide when to lock

By locking in the interest rate, the lender is committing to the interest rates for the loan – generally at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the day you apply for your loan and issuance of closing documents. Those who choose to float conclude 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 reduce your rate

Usually you can elect to pay additional points to lower the interest rate of your loan. Every point is 1 percent of the loan and is payable in cash at the time of closing. If you're not sure if purchasing points is right for you, click here to use our points calculator.

4 – Gather your paperwork

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