Are you financing a home?

For many people, applying for financing is one of the more distressing elements of purchasing a house, but it doesn't have to be. I have a close business relationship with several mortgage lenders in the Fort Pierce area, and they've helped me recognize some things that can make the loan application process effortless.

1 – Assemble a list of questions regarding your loan program

If you don't completely understand the advantages and disadvantages of all the various programs, be sure you bring a list of questions. I or one of my lender contacts will assist you in understanding the advantages and disadvantages of both programs, because it can be hard to know the distinctions between both fixed and adjustable rate mortgages.

2 – Decide when to lock

By locking in a rate, your lender is keeping to the interest rates for the loan – often at the time the loan application is sent in. By floating the rate, you can lock the rate at any time between the day of your loan application and closing. Those who elect to float believe that interest rates will decline 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 reduce your rate

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

4 – Gather your paperwork

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