Applying for your new home loan with help from FRANK WARD, REALTORS®

For many people, applying for the mortgage loan can be one of the more troublesome parts of purchasing a home, but it doesn't have to be. Having connections with various lending companies in Durham has helped me realize a few things that can make the process of applying for a loan very easy.

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

Make sure you bring a list of questions if you find that you do not entirely understand the advantages and disadvantages of the different programs. It can be a challenge to know the characteristics of fixed and adjustable rate mortgages. I or one of my lenders will assist you in understanding the advantages and disadvantages of each program.

2 – Decide when you want to lock

When you lock in a rate, the mortgage lender is sure to keep to the mortgage interest rates for the loan – normally at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the loan application day and the issuing of closing documents. Those who opt to float conclude that the 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 decrease your interest rate

Usually you can elect 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 closing. Click here to use our points calculator. This tool will help you determine if buying points is the best option for you.

4 – Compile your paperwork

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