Are you going to finance your new home?

For many people, applying for a loan can be one of the most distressing elements of purchasing a house, but it doesn't have to be. I'm pretty close with some lenders in Dublin, and they've helped me recognize a few things that make the process of applying for a loan easy.

1 – Assemble a list of questions regarding your loan program

Be sure to bring a list of questions with you if you find that you do not fully comprehend the advantages and disadvantages of all the different programs. I or one of my lender contacts will help you understand the advantages and disadvantages of each program, because it can be hard to know the differences between both fixed and adjustable rate mortgages.

2 – Determine when to lock

When you lock in an interest rate, it denotes that a lender keeps to the interest rates for the loan – usually at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the day of your loan application and at the time of closing. Those who decide to float believe 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 reduce your rate

Oftentimes you can decide to pay additional points to lower the rate of your loan. Each point is 1 percent of the mortgage loan and is payable in cash at closing. To determine if buying 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 spend some time getting your documents together. Click here for a list of typical loan documentation.