Are you financing your new home? Greater R.I. Properties, LLC can help.

When buying a home, applying for the mortgage loan is a demanding event for many people, but it doesn't have to be. Having connections to several mortgage lenders in North Kingstown has helped me recognize a few things that make the process of applying for a loan very easy.

1 – Put together a list of questions regarding your loan program

Make sure you bring a list of questions if you do not fully comprehend the advantages and disadvantages of all the different loan programs. I or one of my lender contacts can help you understand the advantages and disadvantages of each one, because it is a challenge to know the differences between both fixed and adjustable rate mortgages.

2 – Determine when to lock

When you lock in the interest rate, it means that your lender guarantees the interest rates for the loan – most often at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between application and at the time of closing. Those who choose to float presume that interest rates will drop 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

Usually you can elect to pay additional points to lower the rate of your mortgage loan. Each point is 1 percent of the mortgage loan and is payable in cash at the time of closing. Click here to use our points calculator. It will assist you with deciding if purchasing points is right for you.

4 – Gather your paperwork

Acquiring 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 normal loan documentation.