Are you financing your new home?

When purchasing a home, applying for a loan is troublesome for many people, but it doesn't have to be. I have a close business relationship with several mortgage lenders in the Arcadia area, and they've helped me learn a few things that will make the process of applying for a loan uncomplicated.

1 – Organize a list of questions about your loan program

Be sure to have a list of questions with you if you do not thoroughly comprehend the advantages and disadvantages of all the different loan programs. I or one of my lenders can help you understand the advantages and disadvantages of each one, because it's a challenge to understand the characteristics of both fixed and adjustable rate mortgages.

2 – Decide when to lock

When you lock in the interest rate, your lender is guaranteed to hold to the interest rates for the loan – often at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between application and closing. Buyers who opt to float presume 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 rate

Usually you can choose 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 closing. Click here to use our points calculator. This tool will help you decide if purchasing points is the best option for you.

4 – Bring your paperwork

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