Are you financing a new home?

For a lot of people, applying for financing can be one of the more demanding parts of purchasing a home, but it doesn't have to be. Having connections to a lot of lenders in the North Kingstown area has helped me recognize some things that make the loan application process uncomplicated.

1 – Organize a list of questions about your loan program

If you do not thoroughly comprehend the ins and outs of all the different loan programs, make sure to bring a list of questions with you. I or one of my trusted lenders can assist you with understanding the advantages and disadvantages of each one, because it can be a challenge to know the distinctions between both fixed and adjustable rate mortgages.

2 – Determine when to lock

By locking in the interest rate, a mortgage lender is keeping to the interest rates for the loan – typically at the time the loan application is sent in. By floating the rate, you can lock the rate at any time between the day you apply for your loan and the issuing of closing documents. Buyers who decide to float believe that interest rates will drop 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

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. Each point is 1 percent of the mortgage loan. Click here to use our points calculator. This tool will assist you in determining if purchasing points is the best option for you.

4 – Bring 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 typical loan documentation.