Hoffer Realty Associates can assist you in applying for a new home loan.

When purchasing a home, applying for financing is a troublesome event for a lot of people, but it doesn't have to be. I have a close relationship with some lenders in DuBois, and they've helped me understand a few things that will make the process of applying for a loan uncomplicated.

1 – Create a list of questions regarding your loan program

Make sure to bring a list of questions if you don't perfectly understand the ins and outs of the various loan programs. It's a challenge to know the differences between fixed and adjustable rate mortgages. I or one of my lender contacts can help you understand the advantages and disadvantages of each one.

2 – Decide when to lock

By locking in the rate, your lender is committing to the interest rates for the loan – commonly 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 closing. Buyers who elect to float think that the interest rates will plunge 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 opt to pay additional points to lower the rate of your mortgage loan, you will pay for them in cash at the time of closing. Every point is 1 percent of the mortgage loan. If you're undecided on whether or not purchasing points is the best option for you, click here to use our points calculator.

4 – Bring your paperwork

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