Are you financing your new home?

When buying a home, applying for a mortgage loan is a very distressing event for a lot of people, but it doesn't have to be. Being close with several lenders in Needham has helped me realize some things that make the process of applying for a loan very easy.

1 – Make a list of questions regarding your loan program

If you do not perfectly realize the pros and cons of all the different programs, make sure you bring a list of questions with you. It's a challenge to know the distinctions between fixed and adjustable rate mortgages. I or one of my trusted lenders can assist you with understanding the advantages and disadvantages of both programs.

2 – Decide when to lock

When you lock in the interest rate, it indicates that a lender keeps to the interest rates for the loan – typically at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between the loan application day and the issuing of closing documents. Buyers who opt 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 – Decide if you want to pay additional points to reduce your interest rate

When you choose to pay additional points to lower the interest rate of your mortgage loan, you will do so by paying for them in cash at the time of closing. Each point is 1 percent of the mortgage loan. Click here to use our points calculator. It will assist you with determining if buying points is the best option for you.

4 – Compile your paperwork

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