Do you wish to finance your new home?

When purchasing a home, applying for financing is a very exasperating event for most people, but it doesn't have to be. Being familiar with several lenders in San Diego has helped me recognize some things that make the process of applying for a loan very easy.

1 – Organize a list of questions about your loan program

Make sure to bring a list of questions if you find that you don't totally realize the ins and outs of the different loan programs. It is a challenge understanding the distinctions between fixed and adjustable rate mortgages. I or one of my lenders will be able to assist you in understanding the advantages and disadvantages of both programs.

2 – Decide when you want to lock

Locking in the interest rate designates that the lender guarantees the interest rates for the loan – normally at the time the loan application is sent in. By floating the rate, you can lock the rate anytime between the day you apply for the loan and at the time of closing. Buyers who opt to float conclude the interest rates will fall 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 decrease your rate

If you elect to pay additional points to lower the interest rate of your loan, you will 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. It will assist you with determining if buying points is right for you.

4 – Compile your paperwork

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