Let AlexCate Realty, LLC - Cathy Cashman assist you in financing your new home.

When purchasing a home, applying for the loan is a exasperating event for most people, but it doesn't have to be. Being close with a lot of lending companies in the New Orleans area has helped me understand some things that make the loan application process pretty simple.

1 – Compose a list of questions about your loan program

If you find that you don't thoroughly realize the pros and cons of the different programs, make sure you bring a list of questions with you. I or one of my lenders can assist you in understanding the advantages and disadvantages of each program, because it's hard to know the differences between both fixed and adjustable rate mortgages.

2 – Determine when to lock

By locking in an interest rate, your mortgage lender is guaranteeing the interest rates for the loan – typically at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between the day you apply for your loan and the issuing of closing documents. Buyers who elect to float conclude that 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

Oftentimes you can opt to pay additional points to lower the interest rate of your mortgage loan. Every point is 1 percent of the loan and is payable in cash at the time of closing. Click here to use our points calculator. It will help you determine if buying points is the best option for you.

4 – Gather your paperwork

Acquiring a mortgage 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.