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Buying a home might be the most exciting, puzzling and straining financial transaction that you 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. Countless loan documents, alien terminology and uncertainty serve to dampen the joy of buying a new home. As soon as the sales agreement is accepted, gaining the financing for the purchase becomes paramount for all but a very few buyers. If you recognize 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 complication of securing a loan.

The Loan Application Interview

Once you have elected a lender, the following 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 annotate 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 corporate transferee, however, your company's relocation policy may pay all or part of origination costs and the lower rate will have more appeal. The loan officer is prepared to explain all of the mortgage information and your options to you when buying a home.