Are you looking to finance a home?

When buying a home, applying for a mortgage loan is a very demanding event for a lot of people, but it doesn't have to be. I have a close business relationship with various mortgage lenders in the North Kingstown area, and they've helped me understand some things that will make the process of applying for a loan pretty simple.

1 – Assemble a list of questions regarding your loan program

If you do not entirely understand the advantages and disadvantages of the different loan programs, make sure to have a list of questions. I or one of my lender contacts can help you understand the advantages and disadvantages of each program, because it can be hard to understand the distinctions between both fixed and adjustable rate mortgages.

2 – Determine when to lock

Locking in the interest rate means that your mortgage lender commits to the mortgage interest rates for the loan – often at the time the loan application is sent in. By floating the rate, you can lock the rate anytime between the loan application day and the issuing of closing documents. Buyers who elect to float presume that interest rates will fall 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

Oftentimes you can decide to pay additional points to lower the rate of your mortgage loan. Every point is 1 percent of the loan and is payable in cash at closing. To determine if purchasing points is the best option for you, click here to use our points calculator.

4 – Gather your paperwork

Acquiring a loan requires lots of paperwork, so you should take some time to get your documents together. Click here to get a list of typical loan documentation.