Thinking of financing a home? Hoffer Realty Associates can help.

For many people, applying for mortgage financing is one of the more exasperating parts of purchasing a home, but it doesn't have to be. I have a close business relationship with several mortgage lenders in the DuBois area, and they've helped me understand a few things that will make the process of applying for a loan much easier.

1 – Compile a list of questions about your loan program

Make sure to bring a list of questions with you if you do not thoroughly understand the ins and outs of the various programs. Oftentimes, it can be a challenge to understand the distinctions between fixed and adjustable rate mortgages. I or one of my lenders can assist you in understanding the advantages and disadvantages of each.

2 – Decide when you want to lock

When you lock in the interest rate, your mortgage lender is sure to hold to the mortgage interest rates for the loan – often at the time the loan application is received. By floating the rate, you can lock the rate anytime between application and closing. Buyers who opt to float believe the interest rates will fall 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 decrease your interest rate

When you choose to pay additional points to lower the rate of your loan, you will pay for them in cash at closing. Every point is 1 percent of the loan. To determine if you should purchase points, click here to use our points calculator.

4 – Compile your paperwork

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