Are you thinking about financing a home?

When purchasing a home, applying for financing is very exasperating for many people, but it doesn't have to be. Being connected with some lenders in the Winston-Salem area has helped me recognize some things that can make the process of applying for a loan a breeze.

1 – Make a list of questions regarding your loan program

If you don't totally understand the advantages and disadvantages of the various programs, make sure you bring a list of questions with you. It can be hard to understand the differences between fixed and adjustable rate mortgages. I or one of my lender contacts will assist you with understanding the advantages and disadvantages of both.

2 – Determine when to lock

By locking in the interest rate, your mortgage lender is holding to the mortgage interest rates for the loan – typically at the time the loan application is sent in. By floating the rate, you can lock the rate anytime between application and closing. Buyers who decide to float presume that the interest rates will drop 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 interest rate

When you decide to pay additional points to lower the rate of your loan, you will pay for them in cash at closing. Every point is 1 percent of the mortgage loan. If you're undecided on whether or not buying 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 for a list of typical loan documentation.