Applying for a new home loan with the help of Preferred Real Estate

For many people, applying for financing can be one of the most demanding parts of buying a home, but it doesn't have to be. I have a close relationship with several lending companies in the Saint Cloud area, and they've helped me realize a few things that can make the process of applying for a loan a snap.

1 – Make a list of questions regarding your loan program

If you find that you do not totally understand the pros and cons of the various programs, be sure you bring a list of questions with you. Oftentimes, it can be a challenge to understand the characteristics of fixed and adjustable rate mortgages. I or one of my trusted lenders will assist you with understanding the advantages and disadvantages of both.

2 – Determine when you want to lock

When you lock in the interest rate, it means that your mortgage lender holds to the interest rates for the loan – normally 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. Those who opt to float think the interest rates will decline 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 lower your rate

If you opt to pay additional points to lower the rate of your loan, you'll pay for them in cash at the time of closing. Each point is 1 percent of the mortgage loan. If you're not sure if buying points is right for you, click here to use our points calculator.

4 – Gather your paperwork

Getting a mortgage loan requires a lot of paperwork, so you should spend some time getting all your documentation together. Click here to get a list of general loan documentation.

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