Are you going to finance a new home?

Most buyers think that applying for mortgage financing is one of the most distressing elements of buying a house, but it doesn't have to be. I'm very connected to several lending companies in DuBois, and they've helped me realize a few things that can make the loan application process very manageable.

1 – Assemble a list of questions about your loan program

Make sure you have a list of questions with you if you find that you do not completely comprehend the ins and outs of the various loan programs. I or one of my lender contacts can help you understand the advantages and disadvantages of both programs, because it's hard to understand the differences between both fixed and adjustable rate mortgages.

2 – Decide when you want to lock

Locking in the interest rate indicates that the lender holds to the mortgage interest rates for the loan – most often at the time the loan application is received. By floating the rate, you can lock the rate at any time between application and at the time of closing. Buyers who elect to float presume 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 – Decide if you want to pay additional points to decrease your rate

When you opt to pay additional points to lower the rate of your 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. Click here to use our points calculator. It will help you decide if purchasing points is right for you.

4 – Gather your paperwork

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