Marianne L. Lilly - RE/MAX Harbor Realty can help you finance a new home in Punta Gorda.

Most people think applying for a loan is one of the more troublesome aspects of buying a home, but it doesn't have to be. I have a close business relationship with several lending companies in Punta Gorda, and they've helped me understand a few things that can make the loan application process a snap.

1 – Make a list of questions regarding your loan program

If you find that you don't completely realize the ins and outs of the different programs, be sure to bring a list of questions. I or one of my lender contacts can assist you in understanding the advantages and disadvantages of each program, because it is a challenge to understand the characteristics of fixed and adjustable rate mortgages.

2 – Decide when you want to lock

By locking in an interest rate, your mortgage lender is holding to the mortgage interest rates for the loan – typically at the time the loan application is sent in. By floating the rate, you can lock the rate at any time between the day you apply for the loan and issuance of closing documents. Those who prefer to float think that 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 lower your interest rate

When you opt to pay additional points to lower the rate of your mortgage loan, you will pay for them in cash at the time of closing. Every point is 1 percent of the loan. Click here to use our points calculator. This tool will help you decide if purchasing points is the best option for you.

4 – Compile your paperwork

Acquiring a loan requires lots of paperwork, so you should take some time to get your documentation together. Click here for a list of general loan documentation.