Are you going to finance a new home?

Applying for the loan is one of the most stressful elements of purchasing a home, but it doesn't have to be. I have a close relationship with many mortgage lenders in Columbus, and they've helped me learn a few things that make the loan application process very manageable.

1 – Compose a list of questions regarding your loan program

If you find that you don't fully realize the advantages and disadvantages of all the different programs, make sure to bring a list of questions with you. It is often a challenge understanding the distinctions between fixed and adjustable rate mortgages. I or one of my lenders will be able to assist you in understanding the advantages and disadvantages of both.

2 – Determine when you want to lock

When you lock in the rate, it signifies that the mortgage lender commits to the 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 loan application day and closing. Those who choose to float believe that interest rates will drop 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

Typically you can opt to pay additional points to lower the interest 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. It will assist you with determining if purchasing points is right for you.

4 – Compile your paperwork

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