Are you financing your new home in North Kingstown?

Applying for mortgage financing is one of the most troublesome parts of purchasing a home, but it doesn't have to be. Having connections with many mortgage lenders in the North Kingstown area has helped me recognize some things that make the process of applying for a loan effortless.

1 – Create a list of questions about your loan program

Be sure you have a list of questions if you find that you don't perfectly understand the pros and cons of the different loan programs. It's a challenge understanding the characteristics of fixed and adjustable rate mortgages. I or one of my lender contacts can help you understand the advantages and disadvantages of each program.

2 – Determine when you want to lock

Locking in a rate means that a mortgage lender keeps to the mortgage interest rates for the loan – commonly 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 issuance of closing documents. Buyers who opt to float conclude 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

Generally you can decide 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 the time of closing. To decide if buying points is the best option for you, click here to use our points calculator.

4 – Compile your paperwork

Acquiring a loan requires a lot of paperwork, so you should spend some time getting all your documentation together. Click here to get a list of normal loan documentation.