Thinking of financing your new home? FRANK WARD, REALTORS® can help.
When buying a home, applying for financing is very stressful for many people, but it doesn't have to be.
I'm very well-connected to some lenders in Durham, and they've helped me learn a few things that can make the loan application process effortless.
1 – Compose a list of questions regarding your loan program
If you don't entirely understand the ins and outs of all the different loan programs, be sure you have a list of questions.
It's a challenge to understand the differences between fixed and adjustable rate mortgages. I or one of my lender contacts will assist you in understanding the advantages and disadvantages of both programs.
2 – Decide when you want to lock
When you lock in an interest rate, the mortgage lender is guaranteed to keep to the mortgage interest rates for the loan – usually at the time the loan application is presented.
By floating the rate, you can lock the rate anytime between application and issuance of closing documents. Buyers who choose to float presume interest rates will fall 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
Generally you can elect to pay additional points to lower the rate of your mortgage loan. Every point is 1 percent of the mortgage loan and is payable in cash at closing.
To decide if you should buy points, click here to use our points calculator.
4 – Compile your paperwork
Acquiring a loan requires lots of paperwork, so you should take some time to get all your documents together. Click here for a list of general loan documentation.