Applying for a home loan with the help of CONNIE SHUGART, Realtor

Most people believe applying for a mortgage loan is one of the most stressful parts of buying a home, but it doesn't have to be. I'm very close to some lending companies in the Cypress area, and they've helped me realize a few things that will make the process of applying for a loan pretty simple.

1 – Compose a list of questions about your loan program

Make sure you bring a list of questions with you if you do not perfectly realize the advantages and disadvantages of all the different loan programs. It is often a challenge understanding the characteristics of both fixed and adjustable rate mortgages. I or one of my lender contacts will be able to assist you with understanding the advantages and disadvantages of each.

2 – Decide when to lock

Locking in the interest rate denotes that your mortgage lender commits to the mortgage interest rates for the loan – generally 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 the loan and closing. Those who decide to float think that the 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 reduce your rate

When you elect to pay additional points to lower the interest 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. Click here to use our points calculator. It will assist you in deciding if purchasing points is right for you.

4 – Compile your paperwork

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