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

When purchasing a home, applying for a mortgage loan is a exasperating event for most people, but it doesn't have to be. I have a close business relationship with some mortgage lenders in Kyle, and they've helped me recognize a few things that will make the loan application process easy.

1 – Create a list of questions about your loan program

Make sure to have a list of questions if you do not entirely realize the ins and outs of the different loan programs. I or one of my lender contacts will be able to help you understand the advantages and disadvantages of each one, because it can be a challenge to understand the differences between fixed and adjustable rate mortgages.

2 – Decide when to lock

Locking in the interest rate means that a lender holds to the mortgage interest rates for the loan – commonly at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between the day you apply for the loan and at the time of closing. Buyers who prefer to float believe that the interest rates will dip 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 rate

When you decide to pay additional points to lower the interest rate of your loan, you will pay for them in cash at the time of closing. Every point is 1 percent of the mortgage loan. To decide if buying points is the best option for you, click here to use our points calculator.

4 – Gather your paperwork

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