Looking to finance a home? Homestead Realty, Inc. can help.

Applying for the mortgage loan can be one of the most troublesome elements of buying a home for a buyer, but it doesn't have to be. I have a close relationship with many lending companies in Milwaukee, and they've helped me recognize some things that can make the process of applying for a loan effortless.

1 – Put together a list of questions about your loan program

Be sure you have a list of questions if you don't thoroughly understand the pros and cons of all the various loan programs. I or one of my lender contacts will assist you in understanding the advantages and disadvantages of each program, because it's a challenge to know the distinctions between both fixed and adjustable rate mortgages.

2 – Determine when you want to lock

When you lock in an interest rate, a lender is guaranteed to keep to the interest rates for the loan – normally at the time the loan application is presented. By floating the rate, you can lock the rate anytime between application and issuance of closing documents. Those who choose to float think 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 reduce your rate

If you decide to pay additional points to lower the interest rate of your loan, you will do so by paying for them in cash at the time of closing. Each point is 1 percent of the loan. Click here to use our points calculator. This tool will assist you with deciding if buying points is the best option for you.

4 – Compile your paperwork

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