Thinking of financing a new home? Greater R.I. Properties, LLC can help.

When purchasing a home, applying for a loan is a distressing event for many people, but it doesn't have to be. I'm very connected to various mortgage lenders in the North Kingstown area, and they've helped me learn a few things that will make the loan application process much easier.

1 – Assemble a list of questions regarding your loan program

If you do not entirely realize the advantages and disadvantages of the different programs, make sure you have a list of questions with you. It can be a challenge to know the distinctions between fixed and adjustable rate mortgages. I or one of my trusted lenders can help you understand the advantages and disadvantages of each one.

2 – Decide when to lock

When you lock in the rate, your mortgage lender is guaranteed to keep to the mortgage interest rates for the loan – usually at the time the loan application is received. By floating the rate, you can lock the rate anytime between the day you apply for the loan and closing. Those who prefer to float think that the interest rates will dip 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

When you decide to pay additional points to lower the interest rate of your mortgage loan, you will pay for them in cash at closing. Every point is 1 percent of the mortgage loan. If you're undecided as to whether or not purchasing points is right for you, click here to use our points calculator.

4 – Gather your paperwork

Obtaining a mortgage loan requires a lot of paperwork, so you should take some time to get all your documents together. Click here for a list of normal loan documentation.