Are you going to finance a home? FRANK WARD, REALTORS® can help.

When buying a home, applying for financing is a very stressful event for a lot of people, but it doesn't have to be. I have a close business relationship with various lending companies in Durham, and they've helped me learn a few things that can make the process of applying for a loan pretty simple.

1 – Compile a list of questions about your loan program

Be sure you have a list of questions with you if you do not entirely understand the pros and cons of the various loan programs. I or one of my trusted lenders can assist you with understanding the advantages and disadvantages of each program, because it's a challenge to understand the differences between both fixed and adjustable rate mortgages.

2 – Decide when to lock

Locking in an interest rate means that your mortgage lender commits to the interest rates for the loan – usually at the time the loan application is received. By floating the rate, you can lock the rate anytime between the day of your loan application and at the time of closing. Those who decide to float think that interest rates will plunge 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

When you opt to pay additional points to lower the interest rate of your loan, you will 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 decide if purchasing points is the best option for you.

4 – Bring your paperwork

Acquiring a mortgage loan requires lots of paperwork, so you should spend some time getting your documents together. Click here to get a list of normal loan documentation.

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