Are you financing your home?

For a lot of people, applying for mortgage financing is one of the most demanding parts of purchasing a house, but it doesn't have to be. Being familiar with many lenders in Winston-Salem has helped me realize a few things that make the loan application process a breeze.

1 – Make a list of questions regarding your loan program

If you find that you do not fully understand the advantages and disadvantages of all the different loan programs, make sure to have a list of questions. I or one of my lender contacts will assist you with understanding the advantages and disadvantages of each one, because it can be hard to know the characteristics of fixed and adjustable rate mortgages.

2 – Determine when to lock

Locking in signifies that the mortgage lender commits to the mortgage interest rates for the loan – commonly at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the day of your loan application and the issuing of closing documents. Those who opt to float believe that 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 decrease your interest rate

Oftentimes you can decide to pay additional points to lower the rate of your mortgage loan. Each point is 1 percent of the mortgage loan and is payable in cash at the time of closing. Click here to use our points calculator. It will help you determine if purchasing points is right for you.

4 – Gather your paperwork

Getting a loan requires lots of paperwork, so you should take some time to get your documentation together. Click here for a list of normal loan documentation.