Are you financing a new home in Durham?
Applying for a mortgage loan can be one of the most exasperating parts of purchasing a house for a buyer, but it doesn't have to be.
I have a close business relationship with various mortgage lenders in the Durham area, and they've helped me learn a few things that will make the loan application process easy.
1 – Put together a list of questions about your loan program
Make sure you have a list of questions if you do not completely comprehend the advantages and disadvantages of the different programs.
I or one of my lender contacts can assist you with understanding the advantages and disadvantages of both programs, because it can be a challenge to know the differences between both fixed and adjustable rate mortgages.
2 – Decide when you want to lock
Locking in the interest rate signifies that the mortgage lender guarantees the mortgage interest rates for the loan – often at the time the loan application is submitted.
By floating the rate, you can lock the rate at any time between application and closing. Buyers who elect to float believe 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
Oftentimes you can opt 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.
To determine if purchasing points is right for you, click here to use our points calculator.
4 – Compile your paperwork
Obtaining a loan requires lots of paperwork, so you should spend some time getting all your documents together. Click here to get a list of typical loan documentation.