Do you want to finance a home?

For many people, applying for financing is one of the more distressing aspects of buying a home, but it doesn't have to be. I have a close relationship with many lending companies in Colorado Springs, and they've helped me learn a few things that make the process of applying for a loan very manageable.

1 – Organize a list of questions about your loan program

If you don't perfectly comprehend the pros and cons of the various programs, be sure to bring a list of questions with you. It's a challenge understanding the characteristics of both fixed and adjustable rate mortgages. I or one of my lender contacts can assist you with understanding the advantages and disadvantages of both.

2 – Decide when to lock

By locking in a rate, your lender is keeping to the interest rates for the loan – typically at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the loan application day and issuance of closing documents. Those who opt to float conclude 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 – Decide if you want to pay additional points to decrease your interest rate

If you decide to pay additional points to lower the rate of your loan, you'll pay for them in cash at closing. Every point is 1 percent of the loan. Click here to use our points calculator. It will help you determine if buying points is the best option for you.

4 – Gather your paperwork

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