Looking to finance a new home?
Applying for mortgage financing can be one of the most demanding aspects of purchasing a home for a buyer, but it doesn't have to be.
I'm pretty connected with a lot of lenders in the Durham area, and they've helped me realize a few things that make the loan application process pretty simple.
1 – Compile a list of questions regarding your loan program
If you find that you do not totally realize the ins and outs of the various loan programs, make sure you have a list of questions with you.
I or one of my lender contacts will help you understand the advantages and disadvantages of each one, because it's hard to know the differences between fixed and adjustable rate mortgages.
2 – Decide when to lock
When you lock in the rate, a mortgage lender is sure to hold to the interest rates for the loan – usually at the time the loan application is sent in.
By floating the rate, you can lock the rate anytime between application and issuance of closing documents. Those who choose to float believe the interest rates will drop 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 lower your rate
When you elect to pay additional points to lower the interest rate of your mortgage loan, you'll pay for them in cash at the time of closing. Every point is 1 percent of the loan.
Click here to use our points calculator. It will help you determine if buying points is right for you.
4 – Compile your paperwork
Getting a loan requires a lot of paperwork, so you should take some time to get all your documentation together. Click here for a list of typical loan documentation.