Applying for a home loan

Applying for a loan is one of the most demanding elements of buying a home, but it doesn't have to be. I have a close business relationship with various lending companies in the Durham area, and they've helped me learn a few things that make the loan application process effortless.

1 – Create a list of questions about your loan program

If you find that you don't entirely comprehend the ins and outs of all the different loan programs, be sure to bring a list of questions. It's hard to understand the differences between fixed and adjustable rate mortgages. I or one of my lenders will assist you with understanding the advantages and disadvantages of each one.

2 – Decide when you want to lock

When you lock in a rate, it means that a lender keeps to the mortgage interest rates for the loan – commonly at the time the loan application is presented. 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 prefer to float believe the interest rates will fall 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 rate

When you choose to pay additional points to lower the rate of your loan, you'll pay for them in cash at the time of closing. Each point is 1 percent of the mortgage loan. Click here to use our points calculator. This tool will assist you with deciding if purchasing points is right for you.

4 – Gather your paperwork

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

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