Applying for a home loan

For many people, applying for the loan is one of the most stressful aspects of buying a house, but it doesn't have to be. I'm very close to several mortgage lenders in Arcadia, and they've helped me recognize a few things that will make the process of applying for a loan a snap.

1 – Compile a list of questions regarding your loan program

If you find that you do not totally comprehend the pros and cons of all the different programs, make sure you have a list of questions. It is a challenge understanding the differences between both fixed and adjustable rate mortgages. I or one of my trusted lenders will be able to help you understand the advantages and disadvantages of each program.

2 – Decide when you want to lock

Locking in a rate means that a mortgage lender holds to the mortgage interest rates for the loan – often at the time the loan application is received. By floating the rate, you can lock the rate at any time between application and at the time of closing. Those who choose 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 – Decide if you want to pay additional points to reduce your interest rate

Generally you can opt to pay additional points to lower the rate of your loan. Every point is 1 percent of the mortgage loan and is payable in cash at the time of closing. Click here to use our points calculator. It will assist you in deciding if buying points is right for you.

4 – Bring your paperwork

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