Are you financing your new home in Punta Gorda? Marianne L. Lilly - RE/MAX Harbor Realty can help.

When purchasing a home, applying for the loan is distressing for most people, but it doesn't have to be. I have a close business relationship with various mortgage lenders in the Punta Gorda area, and they've helped me learn some things that will make the process of applying for a loan a breeze.

1 – Assemble a list of questions regarding your loan program

Be sure you bring a list of questions with you if you find that you do not fully realize the advantages and disadvantages of all the different programs. At times, it can be hard to understand the distinctions between both fixed and adjustable rate mortgages. I or one of my lenders can assist you with understanding the advantages and disadvantages of each.

2 – Determine when to lock

When you lock in the rate, it denotes that a lender commits to the mortgage interest rates for the loan – commonly at the time the loan application is received. By floating the rate, you can lock the rate at any time between the loan application day and the issuing of closing documents. Buyers who elect to float believe 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 decrease your rate

If you decide to pay additional points to lower the rate of your loan, you'll do so by paying for them in cash at the time of closing. Each point is 1 percent of the mortgage loan. To decide if you should purchase points, click here to use our points calculator.

4 – Gather your paperwork

Acquiring 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.