Are you looking to finance your home in Durham?
Applying for a loan can be one of the most stressful parts of purchasing a home, but it doesn't have to be.
I'm connected to many lenders in the Durham area, and they've helped me realize a few things that will make the process of applying for a loan pretty simple.
1 – Assemble a list of questions regarding your loan program
If you find that you do not fully realize the pros and cons of all the various programs, be sure you bring a list of questions.
I or one of my lenders will help you understand the advantages and disadvantages of both programs, because it can be a challenge to understand the differences between fixed and adjustable rate mortgages.
2 – Determine when you want to lock
By locking in an interest rate, the mortgage lender is committing to the mortgage interest rates for the loan – most often at the time the loan application is submitted.
By floating the rate, you can lock the rate anytime between the day you apply for the loan and the issuing of closing documents. Those who elect to float presume that interest rates will dip 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 interest rate
If you opt to pay additional points to lower the rate of your mortgage loan, you'll do so by paying for them in cash at closing. Every point is 1 percent of the loan.
If you're uncertain as to whether or not purchasing points is right for you, click here to use our points calculator.
4 – Bring your paperwork
Obtaining a loan requires lots of paperwork, so you should take some time to get all your documentation together. Click here to get a list of general loan documentation.