Do you wish to finance a new home?

Applying for a loan can be one of the most distressing aspects of purchasing a house for a buyer, but it doesn't have to be. I have a close relationship with many lenders in the North Kingstown area, and they've helped me realize a few things that can make the process of applying for a loan uncomplicated.

1 – Compile a list of questions regarding your loan program

Be sure you bring a list of questions if you do not totally understand the ins and outs of the different programs. I or one of my trusted lenders will be able to assist you with understanding the advantages and disadvantages of each program, because it's a challenge to know the characteristics of fixed and adjustable rate mortgages.

2 – Decide when to lock

By locking in the rate, the mortgage lender is committing to the mortgage interest rates for the loan – most often at the time the loan application is presented. By floating the rate, you can lock the rate anytime between the loan application day and at the time of closing. Those who decide to float think the 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 decrease your interest rate

If you opt to pay additional points to lower the rate of your loan, you'll pay for them in cash at closing. Each point is 1 percent of the loan. To determine if purchasing points is right for you, click here to use our points calculator.

4 – Compile your paperwork

Getting a mortgage loan requires lots of paperwork, so you should spend some time getting your documentation together. Click here for a list of typical loan documentation.