Marianne L. Lilly - RE/MAX Harbor Realty can assist you with applying for a new home loan.

When purchasing a home, applying for financing is a distressing event for a lot of people, but it doesn't have to be. I'm pretty well-connected to various mortgage lenders in Punta Gorda, and they've helped me learn some things that can make the process of applying for a loan easy.

1 – Compile a list of questions about your loan program

Be sure to have a list of questions with you if you find that you do not perfectly comprehend the ins and outs of all the different programs. I or one of my lender contacts can assist you in understanding the advantages and disadvantages of each one, because it can be a challenge to know the differences between fixed and adjustable rate mortgages.

2 – Determine when you want to lock

When you lock in the rate, the lender is sure to hold to the interest rates for the loan – usually at the time the loan application is presented. By floating the rate, you can lock the rate anytime between application and the issuing of closing documents. Buyers who prefer to float presume interest rates will decline in the near future. Click here to see the outlook for the next 90 days of interest rates.

3 – Decide if you want to pay additional points to reduce your rate

Normally you can decide to pay additional points to lower the rate of your loan. Each point is 1 percent of the mortgage loan and is payable in cash at closing. To decide if buying points is the best option for you, click here to use our points calculator.

4 – Compile your paperwork

Obtaining a loan requires a lot of paperwork, so you should take some time to get all your documents together. Click here to get a list of typical loan documentation.