Are you thinking about financing your home?

For most people, applying for a loan can be one of the more stressful elements of purchasing a house, but it doesn't have to be. Being close to a lot of lending companies in Greenfield has helped me realize some things that will make the process of applying for a loan effortless.

1 – Put together a list of questions regarding your loan program

If you find that you don't completely realize the pros and cons of the different loan programs, be sure you bring a list of questions with you. It is hard to understand the differences between fixed and adjustable rate mortgages. I or one of my lender contacts will assist you in understanding the advantages and disadvantages of both programs.

2 – Determine when to lock

When you lock in the rate, it signifies that your lender guarantees the interest rates for the loan – normally at the time the loan application is received. By floating the rate, you can lock the rate anytime between the day you apply for the loan and the issuing of closing documents. Those who prefer to float conclude the interest rates will fall 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 rate

If you decide to pay additional points to lower the interest rate of your loan, you will pay for them in cash at closing. Every point is 1 percent of the mortgage loan. Click here to use our points calculator. It will help you decide if buying points is the best option for you.

4 – Compile your paperwork

Obtaining a loan requires lots of paperwork, so you should spend some time getting all your documentation together. Click here for a list of normal loan documentation.