Are you thinking of financing a home?

Applying for a mortgage loan can be one of the most exasperating aspects of purchasing a house for a buyer, but it doesn't have to be. Being close to a lot of lenders in the Salisbury area has helped me recognize some things that make the loan application process effortless.

1 – Assemble a list of questions about your loan program

If you find that you do not fully realize the ins and outs of all the different loan programs, make sure to have a list of questions with you. I or one of my lenders can assist you with understanding the advantages and disadvantages of each program, because it is hard to know the characteristics of both fixed and adjustable rate mortgages.

2 – Determine when to lock

When you lock in the rate, it denotes that the mortgage lender holds to the interest rates for the loan – generally at the time the loan application is presented. By floating the rate, you can lock the rate anytime between the day you apply for the loan and issuance of closing documents. Buyers who prefer to float presume that interest rates will plunge 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 rate

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

4 – Compile your paperwork

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