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

Applying for a loan is one of the most stressful elements of buying a house, but it doesn't have to be. I'm familiar with many mortgage lenders in North Kingstown, and they've helped me recognize some things that make the loan application process easy.

1 – Compose a list of questions regarding your loan program

If you do not perfectly comprehend the ins and outs of the different loan programs, be sure you bring a list of questions. Oftentimes, it can be a challenge to understand the distinctions between fixed and adjustable rate mortgages. I or one of my lender contacts will be able to help you understand the advantages and disadvantages of each.

2 – Determine when to lock

When you lock in the interest rate, the mortgage lender is sure to hold to the 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 of your loan application and the issuing of closing documents. Buyers who elect 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 lower your interest rate

Usually you can choose to pay additional points to lower the interest rate of your mortgage loan. Each point is 1 percent of the loan and is payable in cash at closing. To determine if you should purchase points, click here to use our points calculator.

4 – Gather your paperwork

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