Are you thinking of financing your new home in Salisbury?

For most people, applying for the loan is one of the more demanding parts of buying a home, but it doesn't have to be. Having connections with some lending companies in Salisbury has helped me learn some things that make the loan application process very easy.

1 – Put together a list of questions about your loan program

Be sure to bring a list of questions with you if you find that you do not perfectly understand the advantages and disadvantages of the various loan programs. It is often hard to understand the differences between both fixed and adjustable rate mortgages. I or one of my lenders will assist you with understanding the advantages and disadvantages of both.

2 – Determine when to lock

By locking in a rate, the mortgage lender is guaranteeing the mortgage interest rates for the loan – often at the time the loan application is received. By floating the rate, you can lock the rate anytime between the day you apply for the loan and closing. Those who opt to float think 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 reduce your rate

If you elect to pay additional points to lower the rate of your mortgage loan, you'll pay for them in cash at closing. Every point is 1 percent of the loan. Click here to use our points calculator. It will assist you in determining if purchasing points is right for you.

4 – Compile your paperwork

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