Thinking of financing your home in Needham?

Applying for a mortgage loan is one of the most distressing elements of purchasing a home for a buyer, but it doesn't have to be. Being familiar with various lenders in the Needham area has helped me understand a few things that can make the process of applying for a loan a breeze.

1 – Assemble a list of questions about your loan program

If you do not thoroughly understand the advantages and disadvantages of all the various programs, make sure you bring a list of questions. It is hard to understand the differences between both fixed and adjustable rate mortgages. I or one of my lender contacts will be able to assist you with understanding the advantages and disadvantages of both.

2 – Determine when to lock

When you lock in the rate, a mortgage lender is guaranteed to commit to the interest rates for the loan – ordinarily at the time the loan application is sent in. By floating the rate, you can lock the rate at any time between the day of your loan application and closing. Buyers who decide to float presume interest rates will decline 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 decide 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 closing. Click here to use our points calculator. This tool will help you decide if purchasing points is right for you.

4 – Compile your paperwork

Getting a loan requires a lot of paperwork, so you should take some time to get all your documentation together. Click here to get a list of typical loan documentation.