Looking to finance your new home? FRANK WARD, REALTORS® can help.
Applying for financing can be one of the most demanding aspects of buying a house for a buyer, but it doesn't have to be.
Being familiar with a lot of lenders in Durham has helped me learn some things that will make the loan application process pretty simple.
1 – Put together a list of questions about your loan program
If you find that you do not totally comprehend the ins and outs of all the various loan programs, make sure you bring a list of questions.
It can be a challenge understanding the distinctions between fixed and adjustable rate mortgages. I or one of my lender contacts can help you understand the advantages and disadvantages of each program.
2 – Determine when to lock
When you lock in an interest rate, it denotes that the lender keeps to the mortgage interest rates for the loan – usually 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 your loan and the issuing of closing documents. Buyers who choose to float think interest rates will decline 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 decrease your interest rate
When you decide to pay additional points to lower the interest rate of your loan, you'll do so by paying for them in cash at the time of closing. Each point is 1 percent of the loan.
Click here to use our points calculator. It will help you decide if purchasing points is the best option for you.
4 – Bring your paperwork
Acquiring a loan requires a lot of paperwork, so you should take some time to get all your documents together. Click here to get a list of normal loan documentation.