Are you financing your new home? Grover Collins Real Estate & Auction Inc. can help.

Applying for financing is one of the most demanding parts of buying a house for a buyer, but it doesn't have to be. I have a close relationship with several lenders in the Lewisburg area, and they've helped me learn a few things that will make the loan application process uncomplicated.

1 – Create a list of questions about your loan program

If you find that you do not entirely understand the pros and cons of the various loan programs, make sure you have a list of questions. I or one of my lenders will assist you in understanding the advantages and disadvantages of each one, because it's a challenge to know the distinctions between both fixed and adjustable rate mortgages.

2 – Determine when you want to lock

When you lock in an interest rate, the mortgage lender is sure to commit to the mortgage interest rates for the loan – typically at the time the loan application is presented. By floating the rate, you can lock the rate anytime between the day you apply for your loan and issuance of closing documents. Those who elect to float presume that interest rates will plunge 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

Generally you can choose to pay additional points to lower the interest rate of your loan. Each point is 1 percent of the loan and is payable in cash at closing. Click here to use our points calculator. This tool will assist you with deciding if purchasing points is right for you.

4 – Gather your paperwork

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

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