Are you thinking about financing a new home?

Applying for mortgage financing can be one of the most demanding elements of buying a house, but it doesn't have to be. Being familiar with several mortgage lenders in Durham has helped me understand some things that will make the process of applying for a loan uncomplicated.

1 – Organize a list of questions regarding your loan program

If you find that you do not totally comprehend the advantages and disadvantages of all the different loan programs, make sure you have a list of questions with you. I or one of my trusted lenders can help you understand the advantages and disadvantages of each one, because it can be hard to know the differences between fixed and adjustable rate mortgages.

2 – Determine when you want to lock

When you lock in the rate, it signifies that your mortgage lender commits to the mortgage interest rates for the loan – ordinarily at the time the loan application is sent in. By floating the rate, you can lock the rate anytime between the day you apply for the loan and issuance of closing documents. Those who prefer to float presume interest rates will dip 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 lower your interest rate

Oftentimes you can elect to pay additional points to lower the interest rate of your loan. Each point is 1 percent of the mortgage loan and is payable in cash at closing. If you're uncertain as to whether or not purchasing points is right for you, click here to use our points calculator.

4 – Bring your paperwork

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