Are you going to finance a home?

When buying a home, applying for a mortgage loan is a very stressful event for a lot of people, but it doesn't have to be. I'm very connected with many lenders in Tamuning, and they've helped me realize some things that can make the loan application process easy.

1 – Compile a list of questions about your loan program

If you do not entirely realize the ins and outs of all the different loan programs, be sure to bring a list of questions with you. It can be a challenge to understand the distinctions between fixed and adjustable rate mortgages. I or one of my lenders will assist you in understanding the advantages and disadvantages of each.

2 – Determine when to lock

By locking in a rate, your lender is holding to the interest rates for the loan – typically at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the day you apply for your loan and issuance of closing documents. Those who elect to float conclude the 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 interest rate

Typically you can elect 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. Click here to use our points calculator. It will assist you in deciding if buying points is right for you.

4 – Gather your paperwork

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