Are you thinking of financing your new home? Hot Homes Realty can help.

Applying for a mortgage loan can be one of the most troublesome aspects of buying a home for a buyer, but it doesn't have to be. Being familiar with various mortgage lenders in the Dunedin area has helped me recognize some things that will make the loan application process easy.

1 – Make a list of questions about your loan program

Be sure to bring a list of questions if you find that you don't completely understand the advantages and disadvantages of all the different programs. I or one of my lender contacts will be able to help you understand the advantages and disadvantages of each one, because it is hard to know the characteristics of both fixed and adjustable rate mortgages.

2 – Decide when you want to lock

When you lock in the rate, the mortgage lender is guaranteed to commit to the mortgage interest rates for the loan – ordinarily at the time the loan application is received. By floating the rate, you can lock the rate at any time between the day you apply for your loan and issuance of closing documents. Buyers who decide to float think interest rates will decline 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

Usually you can choose to pay additional points to lower the interest rate of your loan. Every point is 1 percent of the loan and is payable in cash at the time of closing. To decide if buying points is the best option for you, click here to use our points calculator.

4 – Gather your paperwork

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