Shapar Homes can assist you with applying for a new home loan in San Diego.

Many buyers think applying for financing is one of the more distressing aspects of buying a house, but it doesn't have to be. I'm close to some mortgage lenders in the San Diego area, and they've helped me realize some things that can make the loan application process much easier.

1 – Assemble a list of questions regarding your loan program

If you do not thoroughly understand the advantages and disadvantages of the different loan programs, be sure to bring a list of questions with you. I or one of my lenders will be able to assist you with understanding the advantages and disadvantages of each one, because it can be a challenge to know the differences between fixed and adjustable rate mortgages.

2 – Determine when to lock

By locking in an interest rate, the mortgage lender is keeping to the mortgage interest rates for the loan – typically at the time the loan application is presented. 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 choose to float conclude that 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 decrease your rate

If you elect to pay additional points to lower the rate of your loan, you will do so by paying for them in cash at the time of closing. Each point is 1 percent of the loan. Click here to use our points calculator. This tool will assist you in deciding if buying points is the best option for you.

4 – Compile your paperwork

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