Applying for your loan in Durham

Applying for mortgage financing is one of the most distressing elements of purchasing a house, but it doesn't have to be. I have a close business relationship with many lending companies in Durham, and they've helped me recognize some things that can make the loan application process easy.

1 – Create a list of questions regarding your loan program

Make sure you bring a list of questions if you find that you do not totally realize the pros and cons of the different programs. I or one of my lender contacts will be able to assist you with understanding the advantages and disadvantages of each program, because it's a challenge to know the distinctions between both fixed and adjustable rate mortgages.

2 – Decide when to lock

Locking in a rate indicates that your mortgage lender keeps to the mortgage interest rates for the loan – normally at the time the loan application is sent in. By floating the rate, you can lock the rate at any time between application and issuance of closing documents. Buyers who opt to float conclude that 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 reduce your interest rate

If you choose to pay additional points to lower the rate of your mortgage loan, you'll pay 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 – Compile your paperwork

Acquiring a loan requires a lot of paperwork, so you should spend some time getting your documents together. Click here for a list of typical loan documentation.