Are you thinking about financing your new home?

Applying for a loan is one of the most troublesome elements of purchasing a house for a buyer, but it doesn't have to be. Being connected with a lot of lending companies in the Prairieville area has helped me understand a few things that can make the loan application process a snap.

1 – Assemble a list of questions about your loan program

If you find that you don't completely realize the pros and cons of all the different programs, make sure you have a list of questions with you. I or one of my lender contacts will help you understand the advantages and disadvantages of each one, because it is a challenge to understand the distinctions between both fixed and adjustable rate mortgages.

2 – Decide when you want to lock

When you lock in an interest rate, it denotes that a lender keeps to the interest rates for the loan – normally at the time the loan application is received. 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 conclude that the 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 decrease your interest rate

Usually you can elect to pay additional points to lower the rate of your loan. Every point is 1 percent of the mortgage loan and is payable in cash at closing. If you're uncertain as to whether or not buying points is right for you, click here to use our points calculator.

4 – Compile your paperwork

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