Applying for a home loan

For most people, applying for financing can be one of the more distressing aspects of purchasing a home, but it doesn't have to be. I have a close relationship with several lending companies in San Diego, and they've helped me learn a few things that make the loan application process much easier.

1 – Assemble a list of questions regarding your loan program

Be sure you bring a list of questions with you if you find that you don't fully realize the ins and outs of the various programs. I or one of my lenders can assist you with understanding the advantages and disadvantages of each program, because it's hard to know the differences between fixed and adjustable rate mortgages.

2 – Determine when to lock

Locking in an interest rate designates that your mortgage lender holds to the interest rates for the loan – generally at the time the loan application is presented. By floating the rate, you can lock the rate at any time between application and at the time of closing. Buyers who choose to float conclude 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 – Determine if you want to pay additional points to decrease your interest rate

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

4 – Gather your paperwork

Getting a mortgage loan requires lots of paperwork, so you should take some time to get all your documents together. Click here for a list of normal loan documentation.