Are you thinking about financing a new home in San Diego? Shapar Homes can help.

For most people, applying for the mortgage loan is one of the most troublesome parts of purchasing a home, but it doesn't have to be. I'm very well-connected to a lot of mortgage lenders in San Diego, and they've helped me realize a few things that will make the process of applying for a loan pretty simple.

1 – Make a list of questions about your loan program

If you find that you don't entirely comprehend the ins and outs of all the various programs, be sure you have a list of questions with you. It is often a challenge understanding the differences between both fixed and adjustable rate mortgages. I or one of my lender contacts will be able to assist you with understanding the advantages and disadvantages of each.

2 – Decide when to lock

Locking in the interest rate denotes that a mortgage lender commits to the interest rates for the loan – normally at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the day you apply for the loan and at the time of closing. Those who decide to float conclude that the interest rates will decline 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 interest rate

Generally you can elect to pay additional points to lower the rate of your loan. Every 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 decide if purchasing points is the best option for you.

4 – Gather your paperwork

Getting a loan requires lots of paperwork, so you should take some time to get all your documentation together. Click here to get a list of common loan documentation.