Are you financing your home?

Most people think that applying for financing is one of the most distressing elements of purchasing a house, but it doesn't have to be. Being familiar with some lending companies in the North Kingstown area has helped me realize some things that can make the loan application process uncomplicated.

1 – Compose a list of questions about your loan program

Be sure to have a list of questions if you don't completely realize the advantages and disadvantages of the various loan programs. I or one of my lender contacts can help you understand the advantages and disadvantages of each program, because it is a challenge to understand the differences between both fixed and adjustable rate mortgages.

2 – Decide when you want to lock

Locking in the interest rate means that your mortgage lender commits to the interest rates for the loan – generally at the time the loan application is sent in. By floating the rate, you can lock the rate at any time between the day of your loan application and at the time of closing. Buyers who prefer to float conclude 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 rate

When you elect to pay additional points to lower the interest rate of your mortgage loan, you'll do so by paying for them in cash at the time of closing. Every point is 1 percent of the loan. To determine if buying points is the best option for you, click here to use our points calculator.

4 – Bring your paperwork

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