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

When purchasing a home, applying for a mortgage loan is a exasperating event for most people, but it doesn't have to be. I'm very well-connected with several lenders in Salisbury, and they've helped me understand a few things that will make the process of applying for a loan much easier.

1 – Make a list of questions about your loan program

Make sure to bring a list of questions if you don't completely realize the advantages and disadvantages of all the different loan programs. I or one of my lenders can assist you in understanding the advantages and disadvantages of both programs, because it is a challenge to know the characteristics of both fixed and adjustable rate mortgages.

2 – Decide when to lock

When you lock in an interest rate, it means that a mortgage lender keeps to the interest rates for the loan – generally at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between the day you apply for your loan and closing. Those who opt to float presume the interest rates will plunge 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 rate

When you elect to pay additional points to lower the rate of your mortgage loan, you will do so by paying for them in cash at the time of closing. Every point is 1 percent of the loan. If you're unsure as to whether or not buying points is right for you, click here to use our points calculator.

4 – Compile your paperwork

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