Do you want to finance your home?

Applying for the mortgage loan is one of the most distressing aspects of buying a house, but it doesn't have to be. I have a close relationship with some lenders in the Needham area, and they've helped me learn some things that can make the loan application process pretty simple.

1 – Make a list of questions regarding your loan program

If you find that you do not perfectly realize the advantages and disadvantages of the different loan programs, make sure you bring a list of questions with you. I or one of my lender contacts can assist you with understanding the advantages and disadvantages of each one, because it can be hard to understand the differences between both fixed and adjustable rate mortgages.

2 – Decide when you want to lock

By locking in an interest rate, a lender is holding 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 the day of your loan application and the issuing of closing documents. Those who elect to float conclude the 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

Oftentimes you can elect to pay additional points to lower the interest rate of your loan. Each point is 1 percent of the loan and is payable in cash at the time of closing. Click here to use our points calculator. This tool will help you decide if purchasing points is the best option for you.

4 – Bring your paperwork

Acquiring a loan requires a lot of paperwork, so you should spend some time getting your documents together. Click here for a list of typical loan documentation.