Applying for a home loan

When buying a home, applying for the mortgage loan is very stressful for many people, but it doesn't have to be. I'm familiar with some lenders in the Durham area, and they've helped me recognize some things that make the loan application process much easier.

1 – Make a list of questions regarding your loan program

If you don't entirely comprehend the pros and cons of the various programs, make sure to have a list of questions with you. I or one of my lender contacts will be able to assist you in understanding the advantages and disadvantages of both programs, because it can be a challenge to know the characteristics of both fixed and adjustable rate mortgages.

2 – Determine when to lock

When you lock in the interest rate, it denotes that your mortgage lender guarantees the interest rates for the loan – often 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 the issuing of closing documents. 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 lower your rate

If you decide 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. Every point is 1 percent of the loan. Click here to use our points calculator. This tool will help you decide if purchasing points is right for you.

4 – Compile your paperwork

Acquiring a mortgage loan requires lots of paperwork, so you should spend some time getting all your documentation together. Click here for a list of typical loan documentation.