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Buying a home might be the most thrilling, confounding and stressful financial transaction you ever undertake. Even if you have done it several times you can still find the process complicated and intimidating, particularly when it comes to getting mortgage financing. Reams of loan documents, foreign terminology and anxiety serve to dampen the joy of buying a new home. As soon as the sales offer and contract is ratified, securing the financing for the purchase becomes pre-eminent for all but a very few home buyers. If you know the steps required to qualify for a mortgage 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 complexities of obtaining a mortgage loan.

The Loan Application Interview

Once you have selected a mortgage broker, the next step will likely be a meeting with a loan officer or other lender representative, whose job is to begin the collection of information the lender desires to approve the mortgage loan. They will break down 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.