Applying for your home loan in Needham

A lot of buyers think applying for the loan is one of the most demanding aspects of purchasing a home, but it doesn't have to be. I have a close business relationship with various lending companies in the Needham area, and they've helped me realize a few things that make the loan application process easy.

1 – Compile a list of questions about your loan program

Be sure to have a list of questions with you if you find that you don't thoroughly comprehend the advantages and disadvantages of the different loan programs. I or one of my lenders can assist you in understanding the advantages and disadvantages of each program, because it is a challenge to understand the distinctions between fixed and adjustable rate mortgages.

2 – Determine when you want to lock

By locking in the rate, a mortgage lender is keeping to the interest rates for the loan – commonly at the time the loan application is presented. By floating the rate, you can lock the rate at any time between application and closing. Those who choose to float believe 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 lower your interest rate

Oftentimes you can choose to pay additional points to lower the rate of your mortgage loan. Every point is 1 percent of the mortgage loan and is payable in cash at the time of closing. If you're unsure as to whether or not purchasing points is right for you, click here to use our points calculator.

4 – Compile your paperwork

Acquiring a mortgage loan requires a lot of paperwork, so you should spend some time getting all your documents together. Click here to get a list of common loan documentation.