Looking to finance your home?

A lot of buyers believe applying for the mortgage loan is one of the more distressing elements of buying a home, but it doesn't have to be. I have a close business relationship with several lending companies in the Austin area, and they've helped me learn some things that make the loan application process pretty simple.

1 – Put together a list of questions regarding your loan program

Be sure you bring a list of questions if you don't fully understand the pros and cons of the various programs. Oftentimes, it can be a challenge understanding the distinctions between fixed and adjustable rate mortgages. I or one of my trusted lenders will be able to assist you with understanding the advantages and disadvantages of each program.

2 – Decide when you want to lock

When you lock in the rate, it signifies that a lender keeps to the mortgage interest rates for the loan – often at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the day you apply for your loan and closing. Those who decide to float presume that interest rates will dip 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 decrease your interest rate

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

4 – Gather your paperwork

Getting a loan requires a lot of paperwork, so you should spend some time getting all your documents together. Click here for a list of typical loan documentation.