Are you financing a new home in San Diego?

Applying for the mortgage loan can be one of the most troublesome elements of purchasing a home, but it doesn't have to be. I'm very well-connected with a lot of mortgage lenders in the San Diego area, and they've helped me learn a few things that make the loan application process easy.

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

Make sure to have a list of questions with you if you do not thoroughly comprehend the ins and outs of the various loan programs. I or one of my lender contacts will be able to help you understand the advantages and disadvantages of each one, because it's a challenge to understand the differences between both fixed and adjustable rate mortgages.

2 – Decide when to lock

By locking in an interest rate, the mortgage lender is guaranteeing the interest rates for the loan – commonly at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between the loan application day and the issuing of closing documents. Those who prefer to float think that 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 reduce your interest rate

Typically you can opt to pay additional points to lower the rate of your loan. Each point is 1 percent of the loan and is payable in cash at the time of closing. Click here to use our points calculator. It will assist you with deciding if purchasing points is right for you.

4 – Compile your paperwork

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