Are you going to finance a new home? Latte Stone Properties, LLC can help.

When purchasing a home, applying for the loan is a very demanding event for most people, but it doesn't have to be. I have a close relationship with various lenders in the Tamuning area, and they've helped me understand some things that can make the process of applying for a loan uncomplicated.

1 – Organize a list of questions about your loan program

Make sure you have a list of questions with you if you do not perfectly realize the ins and outs of all the various loan programs. I or one of my lender contacts can assist you in understanding the advantages and disadvantages of each program, because it's a challenge to understand the distinctions between fixed and adjustable rate mortgages.

2 – Decide when you want to lock

When you lock in an interest rate, your lender is sure to hold to the mortgage interest rates for the loan – generally at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between application and issuance of closing documents. Buyers who choose to float believe the 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 decrease your rate

If you elect to pay additional points to lower the interest rate of your loan, you will do so by paying for them in cash at the time of closing. Each point is 1 percent of the mortgage loan. To determine if buying points is right for you, click here to use our points calculator.

4 – Compile your paperwork

Obtaining a mortgage loan requires a lot of paperwork, so you should spend some time getting all your documents together. Click here to get a list of common loan documentation.