Looking to finance your new home?

When purchasing a home, applying for a mortgage loan is a very troublesome event for most people, but it doesn't have to be. I'm pretty connected to many lending companies in the Columbus area, and they've helped me understand some things that make the process of applying for a loan very easy.

1 – Make a list of questions about your loan program

Make sure to bring a list of questions with you if you find that you do not perfectly comprehend the ins and outs of the various loan programs. I or one of my trusted lenders will assist you in understanding the advantages and disadvantages of each one, because it is a challenge to know the characteristics of both fixed and adjustable rate mortgages.

2 – Decide when you want to lock

By locking in an interest rate, your lender is guaranteeing the interest rates for the loan – ordinarily at the time the loan application is presented. 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 believe that the 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 decrease your rate

Normally you can choose 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. To determine if buying points is the best option for you, click here to use our points calculator.

4 – Gather your paperwork

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