Applying for your new home loan in Salisbury

When purchasing a home, applying for the loan is very distressing for many people, but it doesn't have to be. I'm pretty familiar with various lenders in the Salisbury area, and they've helped me learn some things that will make the process of applying for a loan very manageable.

1 – Compile a list of questions regarding your loan program

If you don't perfectly realize the ins and outs of all the different loan programs, make sure to bring a list of questions. I or one of my lenders can assist you with understanding the advantages and disadvantages of each one, because it is hard to understand the distinctions between fixed and adjustable rate mortgages.

2 – Determine when you want to lock

Locking in the interest rate signifies that the lender guarantees the mortgage interest rates for the loan – most often at the time the loan application is sent in. By floating the rate, you can lock the rate anytime between application and the issuing of closing documents. Those who choose to float conclude the 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 lower your interest rate

Usually you can elect to pay additional points to lower the rate of your mortgage loan. Each point is 1 percent of the loan and is payable in cash at the time of closing. Click here to use our points calculator. It will assist you with deciding if buying points is right for you.

4 – Gather your paperwork

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