Applying for a new home loan

When buying a home, applying for the mortgage loan is a stressful event for a lot of people, but it doesn't have to be. I have a close relationship with several mortgage lenders in the Piedmont area, and they've helped me realize some things that can make the loan application process pretty simple.

1 – Organize a list of questions about your loan program

Make sure to have a list of questions if you find that you don't entirely comprehend the ins and outs of all the different loan programs. At times, it can be hard to understand the distinctions between both fixed and adjustable rate mortgages. I or one of my lender contacts can assist you with understanding the advantages and disadvantages of both.

2 – Determine when to lock

When you lock in a rate, the lender is sure to hold 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 your loan and closing. Those who elect to float think the interest rates will drop 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 lower your rate

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

4 – Bring your paperwork

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