Applying for your new home loan

Applying for a loan can be one of the most exasperating elements of purchasing a home for a buyer, but it doesn't have to be. I have a close business relationship with some lending companies in the New Orleans area, and they've helped me understand a few things that can make the loan application process a breeze.

1 – Organize a list of questions about your loan program

Make sure you have a list of questions if you find that you don't totally comprehend the ins and outs of all the various loan programs. I or one of my trusted lenders can assist you with understanding the advantages and disadvantages of each program, because it can be a challenge to understand the characteristics of both fixed and adjustable rate mortgages.

2 – Decide when you want to lock

When you lock in an interest rate, your mortgage lender is sure to keep to the mortgage interest rates for the loan – often at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the loan application day and closing. Those who elect to float presume 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

Oftentimes you can choose to pay additional points to lower the rate of your mortgage loan. Every point is 1 percent of the mortgage loan and is payable in cash at the time of closing. If you're uncertain if purchasing points is right for you, click here to use our points calculator.

4 – Bring your paperwork

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