Applying for a new home loan with help from Latte Stone Properties, LLC

Applying for the loan is one of the most distressing elements of purchasing a house, but it doesn't have to be. Having connections with a lot of mortgage lenders in Tamuning has helped me learn a few things that make the loan application process easy.

1 – Organize a list of questions regarding your loan program

Make sure you have a list of questions if you don't totally comprehend the advantages and disadvantages of the different programs. I or one of my lenders will help you understand the advantages and disadvantages of each program, because it is hard to understand the distinctions between fixed and adjustable rate mortgages.

2 – Determine when to lock

When you lock in an interest rate, a mortgage lender is guaranteed to keep to the mortgage interest rates for the loan – often at the time the loan application is received. By floating the rate, you can lock the rate anytime between the day you apply for your loan and at the time of closing. Buyers who opt to float believe that interest rates will drop 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 interest rate

Typically you can elect to pay additional points to lower the interest rate of your mortgage loan. Each point is 1 percent of the loan and is payable in cash at closing. To determine if purchasing points is right for you, click here to use our points calculator.

4 – Gather your paperwork

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