Are you thinking of financing a new home?

Most buyers think applying for financing is one of the more stressful parts of purchasing a home, but it doesn't have to be. I'm familiar with a lot of lenders in Greenfield, and they've helped me recognize some things that make the loan application process pretty simple.

1 – Compose a list of questions regarding your loan program

If you find that you don't completely realize the ins and outs of the various programs, be sure to have a list of questions. I or one of my trusted lenders will assist you with understanding the advantages and disadvantages of each one, because it is a challenge to understand the differences between both fixed and adjustable rate mortgages.

2 – Decide when you want to lock

When you lock in an interest rate, it indicates that your lender holds to the mortgage interest rates for the loan – often at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the day you apply for the loan and at the time of closing. Those who opt to float presume that interest rates will decline 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

Normally you can elect to pay additional points to lower the rate of your mortgage loan. Every point is 1 percent of the mortgage loan and is payable in cash at the time of closing. Click here to use our points calculator. This tool will assist you in determining if buying points is right for you.

4 – Gather your paperwork

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