Do you wish to finance a new home?

Most buyers believe that applying for mortgage financing is one of the most exasperating parts of buying a house, but it doesn't have to be. Being familiar with a lot of lending companies in Salisbury has helped me recognize some things that make the process of applying for a loan a snap.

1 – Assemble a list of questions about your loan program

Be sure you bring a list of questions with you if you don't perfectly comprehend the ins and outs of the different programs. It is often a challenge to know the differences between fixed and adjustable rate mortgages. I or one of my lenders will be able to assist you in understanding the advantages and disadvantages of each one.

2 – Determine when to lock

By locking in a rate, a mortgage lender is committing to the mortgage interest rates for the loan – ordinarily at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the loan application day and closing. Buyers who choose to float think that 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 reduce your interest rate

Generally you can choose to pay additional points to lower the rate of your loan. Every point is 1 percent of the loan and is payable in cash at the time of closing. To decide if you should buy points, click here to use our points calculator.

4 – Gather your paperwork

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