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Applying for a home loan

When purchasing a home, applying for a loan is a very exasperating event for a lot of people, but it doesn't have to be. Being connected with some mortgage lenders in the Blowing Rock area has helped me recognize some things that make the process of applying for a loan easy.

1 – Create a list of questions about your loan program

Be sure you bring a list of questions with you if you don't entirely understand the advantages and disadvantages of the various loan programs. Oftentimes, it can be a challenge to understand the distinctions between fixed and adjustable rate mortgages. I or one of my lender contacts can assist you in understanding the advantages and disadvantages of each.

2 – Determine when to lock

Locking in means that the mortgage lender keeps to the interest rates for the loan – usually at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between the day of your loan application and at the time of closing. Those who prefer to float believe that the 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 interest rate

If you choose to pay additional points to lower the rate of your loan, you'll do so by paying for them in cash at closing. Every point is 1 percent of the mortgage loan. Click here to use our points calculator. This tool will help you determine if buying points is the best option for you.

4 – Bring your paperwork

Acquiring a loan requires a lot of paperwork, so you should spend some time getting your documentation together. Click here to get a list of common loan documentation.