Are you going to finance your new home in Arcadia?

When purchasing a home, applying for the mortgage loan is very stressful for most people, but it doesn't have to be. I have a close relationship with various mortgage lenders in the Arcadia area, and they've helped me understand some things that will make the loan application process much easier.

1 – Assemble a list of questions about your loan program

If you find that you don't completely understand the advantages and disadvantages of all 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 in understanding the advantages and disadvantages of each one, because it is a challenge to know the distinctions between fixed and adjustable rate mortgages.

2 – Determine when to lock

When you lock in an interest rate, your lender is sure to hold to the interest rates for the loan – ordinarily at the time the loan application is received. By floating the rate, you can lock the rate anytime between the day of your loan application and the issuing of closing documents. Buyers who prefer to float conclude that the interest rates will decline 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 lower your interest rate

If you elect to pay additional points to lower the rate of your mortgage loan, you will pay for them in cash at closing. Every point is 1 percent of the mortgage loan. Click here to use our points calculator. It will help you determine if buying points is the best option for you.

4 – Gather your paperwork

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