Do you wish to finance a home?

For most people, applying for the loan is one of the more distressing aspects of purchasing a home, but it doesn't have to be. I have a close relationship with many lending companies in Winston-Salem, and they've helped me understand a few things that can make the process of applying for a loan a snap.

1 – Compile a list of questions regarding your loan program

If you find that you do not entirely realize the advantages and disadvantages of the various programs, be sure you bring a list of questions. It can be hard to know the differences between both fixed and adjustable rate mortgages. I or one of my lender contacts will assist you in understanding the advantages and disadvantages of each.

2 – Decide when to lock

When you lock in the interest rate, the lender is sure to commit to the interest rates for the loan – generally at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the day of your loan application and closing. Buyers who prefer to float believe the interest rates will decline 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 rate

When 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 the time of closing. Each point is 1 percent of the mortgage loan. If you're unsure as to whether or not purchasing points is right for you, click here to use our points calculator.

4 – Gather your paperwork

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