Are you thinking about financing a home? Greater R.I. Properties, LLC can help.

When purchasing a home, applying for a loan is very exasperating for many people, but it doesn't have to be. I have a close relationship with a lot of mortgage lenders in the North Kingstown area, and they've helped me learn a few things that can make the loan application process very manageable.

1 – Make a list of questions about your loan program

Be sure you have a list of questions with you if you find that you don't thoroughly comprehend the ins and outs of the different programs. Oftentimes, it can be hard to know the distinctions between both fixed and adjustable rate mortgages. I or one of my trusted lenders can help you understand the advantages and disadvantages of both programs.

2 – Decide when you want to lock

When you lock in an interest rate, it denotes that the mortgage lender guarantees the mortgage interest rates for the loan – ordinarily at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between application and issuance of closing documents. Buyers who elect to float think 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 lower your interest rate

If you choose 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 unsure if purchasing points is the best option for you, click here to use our points calculator.

4 – Gather your paperwork

Acquiring a loan requires a lot of paperwork, so you should take some time to get your documentation together. Click here for a list of general loan documentation.