Thinking of financing a home in Durham?
Most people think applying for mortgage financing is one of the most demanding parts of buying a home, but it doesn't have to be.
I have a close business relationship with various mortgage lenders in Durham, and they've helped me learn some things that make the process of applying for a loan uncomplicated.
1 – Create a list of questions regarding your loan program
Be sure to bring a list of questions if you find that you do not entirely comprehend the advantages and disadvantages of all the various programs.
I or one of my trusted lenders will assist you with understanding the advantages and disadvantages of each one, because it can be hard to know the distinctions between fixed and adjustable rate mortgages.
2 – Decide when to lock
When you lock in an interest rate, it indicates that the mortgage lender holds to the mortgage interest rates for the loan – normally 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 issuance of closing documents. Buyers who elect to float conclude the interest rates will decline in the near future. Click here to see the outlook for the next 90 days of interest rates.
3 – Determine if you want to pay additional points to reduce your interest rate
If you decide to pay additional points to lower the interest rate of your loan, you'll pay for them in cash at closing. Each point is 1 percent of the loan.
To decide if buying points is right for you, click here to use our points calculator.
4 – Compile your paperwork
Obtaining a loan requires lots of paperwork, so you should spend some time getting your documentation together. Click here to get a list of common loan documentation.