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

For most people, applying for the loan can be one of the most exasperating aspects of buying a house, but it doesn't have to be. I'm pretty close to some mortgage lenders in the DuBois area, and they've helped me realize some things that will make the process of applying for a loan very easy.

1 – Create a list of questions regarding your loan program

If you don't entirely understand the advantages and disadvantages of the various loan programs, be sure you bring a list of questions. It is a challenge to know the characteristics of fixed and adjustable rate mortgages. I or one of my lender contacts can assist you with understanding the advantages and disadvantages of each one.

2 – Decide when to lock

When you lock in the interest rate, a lender is sure to keep to the interest rates for the loan – ordinarily at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between the day of your loan application and at the time of closing. Buyers who elect to float believe that 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 reduce your rate

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

4 – Gather your paperwork

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