Thinking about financing a new home?
Most buyers think applying for the loan is one of the most stressful parts of buying a house, but it doesn't have to be.
I have a close relationship with some lenders in Durham, and they've helped me learn some things that can make the loan application process easy.
1 – Create a list of questions regarding your loan program
If you find that you do not entirely comprehend the advantages and disadvantages of the different loan programs, make sure you bring a list of questions with you.
At times, it can be a challenge understanding the characteristics of fixed and adjustable rate mortgages. I or one of my lender contacts will assist you in understanding the advantages and disadvantages of each.
2 – Determine when you want to lock
When you lock in the rate, it indicates that a lender commits to the mortgage interest rates for the loan – generally at the time the loan application is sent in.
By floating the rate, you can lock the rate anytime between the loan application day and issuance of closing documents. Those who opt to float presume that interest rates will dip 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 rate
If you choose to pay additional points to lower the interest rate of your mortgage loan, you will do so by paying for them in cash at closing. Each point is 1 percent of the loan.
To decide if purchasing points is the best option for you, click here to use our points calculator.
4 – Bring your paperwork
Obtaining a mortgage loan requires a lot of paperwork, so you should spend some time getting your documents together. Click here for a list of general loan documentation.