Are you going to finance a new home? Shapar Homes can help.

Applying for a loan is one of the most troublesome elements of buying a home, but it doesn't have to be. Being close with some lenders in the San Diego area has helped me realize some things that can make the loan application process easy.

1 – Make a list of questions regarding your loan program

Be sure you have a list of questions with you if you don't fully realize the pros and cons of all the different loan programs. I or one of my lender contacts will be able to assist you with understanding the advantages and disadvantages of each program, because it's a challenge to know the differences between both fixed and adjustable rate mortgages.

2 – Decide when to lock

When you lock in the rate, your mortgage lender is sure to hold to the mortgage interest rates for the loan – often at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between application and at the time of closing. Those who elect to float presume that the interest rates will drop 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 decide to pay additional points to lower the interest rate of your mortgage loan. Each point is 1 percent of the loan and is payable in cash at closing. Click here to use our points calculator. It will help you decide if purchasing points is right for you.

4 – Gather your paperwork

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