Let FRANK WARD, REALTORS® assist you in financing your home in Durham.

Applying for a loan is one of the most distressing elements of purchasing a house for a buyer, but it doesn't have to be. I'm close to a lot of lenders in the Durham area, and they've helped me recognize a few things that will make the process of applying for a loan very easy.

1 – Compile a list of questions about your loan program

Make sure you bring a list of questions with you if you do not thoroughly understand the advantages and disadvantages of all the various programs. It's hard to know the characteristics of both fixed and adjustable rate mortgages. I or one of my lenders will help you understand the advantages and disadvantages of both.

2 – Decide when to lock

When you lock in the rate, it signifies that your lender commits to the interest rates for the loan – normally at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the day of your loan application and issuance of closing documents. Those who choose to float conclude interest rates will plunge 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

Oftentimes you can opt to pay additional points to lower the rate of your loan. Every point is 1 percent of the mortgage loan and is payable in cash at the time of closing. Click here to use our points calculator. It will assist you in deciding if buying points is the best option for you.

4 – Compile your paperwork

Getting a mortgage loan requires a lot of paperwork, so you should take some time to get all your documentation together. Click here to get a list of common loan documentation.