Are you thinking of financing a new home?

When buying a home, applying for the mortgage loan is a very exasperating event for a lot of people, but it doesn't have to be. I'm pretty well-connected to a lot of lenders in the Needham area, and they've helped me understand a few things that will make the process of applying for a loan much easier.

1 – Organize a list of questions about your loan program

Be sure you have a list of questions if you find that you don't totally realize the ins and outs of all the various loan programs. I or one of my lenders can help you understand the advantages and disadvantages of both programs, because it is hard to understand the distinctions between fixed and adjustable rate mortgages.

2 – Decide when you want to lock

When you lock in the rate, a mortgage lender is guaranteed to commit to the mortgage interest rates for the loan – normally at the time the loan application is received. By floating the rate, you can lock the rate at any time between application and the issuing of closing documents. Buyers who opt to float believe that interest rates will decline 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 decrease your rate

When you decide to pay additional points to lower the interest rate of your loan, you'll pay for them in cash at the time of closing. Every point is 1 percent of the loan. 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 documents together. Click here to get a list of normal loan documentation.