Are you going to finance a new home? Glen Alford Realty can help.

When purchasing a home, applying for a loan is a very distressing event for many people, but it doesn't have to be. Being close to various lenders in the area has helped me understand a few things that can make the loan application process easy.

1 – Create a list of questions regarding your loan program

Make sure to have a list of questions if you find that you do not fully comprehend the advantages and disadvantages of all the various programs. It's a challenge understanding the distinctions between fixed and adjustable rate mortgages. I or one of my trusted lenders will be able to assist you in understanding the advantages and disadvantages of both programs.

2 – Decide when you want to lock

When you lock in an interest rate, it means that a mortgage lender holds to the mortgage interest rates for the loan – usually at the time the loan application is received. By floating the rate, you can lock the rate anytime between the day you apply for your loan and the issuing of closing documents. Those who choose to float conclude that 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 decrease your interest rate

Normally you can elect to pay additional points to lower the rate of your loan. Each point is 1 percent of the loan and is payable in cash at closing. Click here to use our points calculator. It will assist you with deciding if purchasing points is the best option for you.

4 – Compile your paperwork

Getting a mortgage loan requires lots of paperwork, so you should take some time to get your documentation together. Click here for a list of common loan documentation.