Buying a home could be the most electrifying, confusing and straining financial transaction that some ever undertake. Even if you have done it a couple of times you can still find the process intimidating and complicated, particularly when it comes to getting a mortgage loan. Reams of loan documents, outlandish terminology and anxiety serve to dampen the joy of buying a new home. As soon as the sales agreement is accepted, securing the financing for the contract becomes pre-eminent for all but a very few home buyers. If you accept and follow the steps required to qualify for a loan, however, much of the stress can be avoided. The following explanation of the loan application interview process is intended to help you through the intricacies of obtaining financing.

The Loan Application Interview

Once you have selected a mortgage broker, the following step will most likely be a consultation with a loan officer or other lender representative, whose task is to begin the collection of information the lender requires to approve the loan. They will define the types of mortgage loans available to you, the interest rates and fees for each type and the qualification requirements. It is at this time that you will complete the loan application paperwork

Most lenders will offer a range of interest rate/point combinations to meet the borrower needs. In general, the higher the interest rate, the lower the points. For example, if the current market provides for an 8.5 percent interest rate with 2 points, a nine percent rate may be offered at no points. If you are a first-time home buyer, the larger monthly payments on the 9 percent loan may be easier to handle than the 2 points that will require additional cash at settlement. The loan officer is prepared to explain all of the mortgage information and your options to you when buying a home.