Are you thinking about financing a new home in Tamuning?

Applying for the mortgage loan can be one of the most stressful parts of purchasing a home for a buyer, but it doesn't have to be. I have a close relationship with a lot of mortgage lenders in Tamuning, and they've helped me learn a few things that make the process of applying for a loan easy.

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

Be sure to bring a list of questions with you if you do not entirely understand 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 both programs, because it is a challenge to understand the differences between fixed and adjustable rate mortgages.

2 – Determine when you want to lock

When you lock in a rate, a lender is sure to keep to the mortgage interest rates for the loan – ordinarily at the time the loan application is received. By floating the rate, you can lock the rate anytime between the day of your loan application and closing. Those who opt 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 reduce your rate

If you decide to pay additional points to lower the rate of your mortgage loan, you will do so by paying for them in cash at closing. Each point is 1 percent of the loan. If you're unsure as to whether or not purchasing points is the best option 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 for a list of general loan documentation.