Are you thinking about financing a new home? John Horton Realty can help.

For many people, applying for financing can be one of the more distressing parts of purchasing a home, but it doesn't have to be. I'm connected with a lot of lenders in Austin, and they've helped me recognize a few things that can make the loan application process effortless.

1 – Compose a list of questions about your loan program

Make sure you bring a list of questions with you if you don't totally comprehend the ins and outs of all the different programs. It is often hard to know the characteristics of fixed and adjustable rate mortgages. I or one of my lenders will assist you in understanding the advantages and disadvantages of both.

2 – Determine when you want to lock

When you lock in an interest rate, a mortgage lender is sure to keep to the mortgage interest rates for the loan – commonly 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 the issuing of closing documents. Buyers who elect to float conclude 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 reduce your interest rate

Generally you can elect to pay additional points to lower the interest rate of your mortgage loan. Every point is 1 percent of the mortgage loan and is payable in cash at the time of closing. If you're unsure if buying points is right for you, click here to use our points calculator.

4 – Compile your paperwork

Getting a loan requires lots of paperwork, so you should take some time to get all your documents together. Click here to get a list of normal loan documentation.