Looking to finance your home?

When purchasing a home, applying for the mortgage loan is very demanding for most people, but it doesn't have to be. Being connected to various lenders in the Tamuning area has helped me realize a few things that can make the loan application process pretty simple.

1 – Create a list of questions about your loan program

Be sure to bring a list of questions with you if you find that you don't completely realize the ins and outs of the different programs. I or one of my lenders can assist you with understanding the advantages and disadvantages of each one, because it is hard to understand the distinctions between both fixed and adjustable rate mortgages.

2 – Determine when to lock

By locking in a rate, your lender is keeping to the interest rates for the loan – most often at the time the loan application is sent in. By floating the rate, you can lock the rate anytime between the day you apply for the loan and closing. Buyers who opt to float presume that the interest rates will fall 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 lower your interest rate

If you opt to pay additional points to lower the rate of your mortgage loan, you'll pay for them in cash at the time of closing. Every point is 1 percent of the mortgage loan. To decide if you should purchase points, click here to use our points calculator.

4 – Bring your paperwork

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