Are you financing a new home in Salisbury? TMR Realty, Inc. can help.

When purchasing a home, applying for the loan is very stressful for many people, but it doesn't have to be. I'm well-connected with several lending companies in the Salisbury area, and they've helped me learn some things that make the loan application process uncomplicated.

1 – Create a list of questions regarding your loan program

Make sure you bring a list of questions if you don't fully realize the advantages and disadvantages of all the different programs. I or one of my lender contacts will help you understand the advantages and disadvantages of each program, because it's a challenge to know the characteristics of fixed and adjustable rate mortgages.

2 – Decide when you want to lock

When you lock in an interest rate, your mortgage lender is guaranteed to commit to the interest rates for the loan – ordinarily 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 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

Normally you can decide to pay additional points to lower the interest rate of your 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 decide if purchasing points is the best option for you.

4 – Gather your paperwork

Obtaining a mortgage loan requires a lot of paperwork, so you should take some time to get your documents together. Click here for a list of general loan documentation.