Are you thinking about financing a new home?

When purchasing a home, applying for a loan is a demanding event for most people, but it doesn't have to be. I have a close business relationship with several lenders in the Gloucester area, and they've helped me recognize some things that can make the process of applying for a loan much easier.

1 – Assemble a list of questions regarding your loan program

Be sure to have a list of questions if you do not fully realize the pros and cons of all the various loan programs. I or one of my lenders will assist you in understanding the advantages and disadvantages of each one, because it is a challenge to understand the differences between fixed and adjustable rate mortgages.

2 – Determine when you want to lock

Locking in means that a lender keeps to the interest rates for the loan – commonly at the time the loan application is presented. By floating the rate, you can lock the rate anytime between the day of your loan application and issuance of closing documents. Those who decide to float presume 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 reduce your rate

If you choose to pay additional points to lower the interest rate of your mortgage loan, you'll do so by paying for them in cash at closing. Each point is 1 percent of the mortgage loan. To determine if purchasing points is the best option for you, click here to use our points calculator.

4 – Gather your paperwork

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

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