Thinking of financing a new home?

When buying a home, applying for the mortgage loan is a stressful event for many people, but it doesn't have to be. I have a close business relationship with various mortgage lenders in the Paris area, and they've helped me recognize some things that will make the process of applying for a loan a breeze.

1 – Make a list of questions about your loan program

Make sure you bring a list of questions if you find that you do not completely comprehend the pros and cons of all the various programs. Oftentimes, it can be a challenge to know the differences between fixed and adjustable rate mortgages. I or one of my lender contacts can assist you with understanding the advantages and disadvantages of both.

2 – Determine when you want to lock

Locking in the interest rate signifies that your mortgage lender guarantees the mortgage interest rates for the loan – most often at the time the loan application is received. By floating the rate, you can lock the rate anytime between application and issuance of closing documents. Buyers who decide to float presume that 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 lower your interest rate

If you decide to pay additional points to lower the interest rate of your loan, you will do so by paying for them in cash at the time of closing. Every point is 1 percent of the mortgage loan. If you're uncertain if buying points is the best option for you, click here to use our points calculator.

4 – Bring your paperwork

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