Are you going to finance your home?

When buying a home, applying for the mortgage loan is a very demanding event for most people, but it doesn't have to be. I'm close with various mortgage lenders in the Winston-Salem area, and they've helped me learn some things that will make the process of applying for a loan effortless.

1 – Put together a list of questions regarding your loan program

If you do not completely understand the advantages and disadvantages of the various programs, be sure you bring a list of questions with you. Oftentimes, it can be a challenge to know the characteristics of fixed and adjustable rate mortgages. I or one of my lenders can assist you with understanding the advantages and disadvantages of both programs.

2 – Determine when you want to lock

When you lock in the rate, a mortgage lender is guaranteed to keep to the interest rates for the loan – often at the time the loan application is received. By floating the rate, you can lock the rate at any time between the day you apply for the loan and closing. Buyers who choose to float think the interest rates will dip 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 lower your interest rate

When you choose to pay additional points to lower the interest rate of your mortgage loan, you'll do so by paying for them in cash at the time of closing. Every point is 1 percent of the mortgage loan. Click here to use our points calculator. It will help you decide if buying points is right for you.

4 – Gather your paperwork

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