Applying for your new home loan in Needham

Applying for mortgage financing is one of the most distressing elements of buying a home for a buyer, but it doesn't have to be. I'm connected to various lenders in the Needham area, and they've helped me recognize some things that will make the process of applying for a loan a snap.

1 – Compile a list of questions about your loan program

If you find that you do not entirely realize the pros and cons of all the various loan programs, make sure you bring a list of questions with you. I or one of my lenders will be able to help you understand the advantages and disadvantages of each program, because it can be a challenge to know the differences between fixed and adjustable rate mortgages.

2 – Decide when to lock

Locking in a rate signifies that a mortgage lender commits to the interest rates for the loan – usually at the time the loan application is sent in. By floating the rate, you can lock the rate anytime between the day you apply for the loan and issuance of closing documents. Those who choose to float think 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 decrease your interest rate

Typically you can opt to pay additional points to lower the rate of your 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 assist you with determining if buying points is the best option for you.

4 – Gather your paperwork

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