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Buying a home could be the most inspiring, puzzling and straining financial transaction you ever undertake. Even if you have done it numerous times you can still find the process intimidating and complicated, particularly when it comes to getting a loan for a house. Reams of loan documents, little known terminology and anxiety serve to deflate the joy of buying a new home. As soon as the sales offer and contract is signed, gaining the financing for the purchase becomes paramount for all but a very few home buyers. If you recognize 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 complexities of securing a loan.

The Loan Application Interview

Once you have decided upon a mortgage broker, the next step will most likely be a conference with a loan officer or other lender representative, whose job is to begin the collection of information the lender requires to approve the loan. They will paraphrase 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.