FRANK WARD, REALTORS® can assist you in applying for a new home loan.

When purchasing a home, applying for a mortgage loan is stressful for most people, but it doesn't have to be. I have a close relationship with some lending companies in Durham, and they've helped me realize a few things that will make the process of applying for a loan uncomplicated.

1 – Put together a list of questions regarding your loan program

Be sure you have a list of questions if you find that you do not thoroughly comprehend the ins and outs of all the different programs. I or one of my lender contacts can help you understand the advantages and disadvantages of both programs, because it's hard to know the characteristics of fixed and adjustable rate mortgages.

2 – Decide when you want to lock

Locking in denotes that your lender holds to the mortgage 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 issuance of closing documents. Those who choose to float conclude the 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

Normally you can opt to pay additional points to lower the rate of your mortgage loan. Every point is 1 percent of the loan and is payable in cash at the time of closing. Click here to use our points calculator. This tool will assist you in determining if purchasing points is right for you.

4 – Compile your paperwork

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