Do you wish to finance a new home? Shapar Homes can help.

Applying for a loan is one of the most troublesome aspects of purchasing a home, but it doesn't have to be. I have a close business relationship with several lending companies in Del Mar, and they've helped me realize a few things that can make the process of applying for a loan very easy.

1 – Make a list of questions regarding your loan program

If you find that you do not completely understand the advantages and disadvantages of all the different programs, make sure you bring a list of questions. It is a challenge to understand the distinctions between both 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.

2 – Decide when to lock

When you lock in the interest rate, it signifies that a mortgage lender holds to the interest rates for the loan – typically at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the day of your loan application and the issuing of closing documents. Those who elect to float believe that the interest rates will dip 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

If you decide to pay additional points to lower the rate of your mortgage loan, you will do so by paying for them in cash at closing. Each point is 1 percent of the mortgage loan. Click here to use our points calculator. This tool will help you determine if purchasing points is right for you.

4 – Compile your paperwork

Obtaining a mortgage loan requires a lot of paperwork, so you should spend some time getting your documents together. Click here for a list of normal loan documentation.