Are you going to finance your home in Arcadia?

When purchasing a home, applying for the mortgage loan is stressful for most people, but it doesn't have to be. Having connections to several lending companies in the Arcadia area has helped me recognize a few things that will make the process of applying for a loan uncomplicated.

1 – Assemble a list of questions about your loan program

Be sure you have a list of questions with you if you find that you don't completely understand the ins and outs of all the different loan programs. I or one of my trusted lenders will be able to assist you in understanding the advantages and disadvantages of each one, because it's hard to know the distinctions between both fixed and adjustable rate mortgages.

2 – Decide when you want to lock

Locking in indicates that a mortgage lender commits to the mortgage interest rates for the loan – generally at the time the loan application is sent in. By floating the rate, you can lock the rate at any time between the day you apply for the loan and the issuing of closing documents. Those who elect to float presume the interest rates will decline 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 reduce your interest rate

Typically you can decide to pay additional points to lower the interest rate of your loan. Each point is 1 percent of the loan and is payable in cash at closing. Click here to use our points calculator. This tool will assist you with deciding if buying points is right for you.

4 – Compile your paperwork

Getting a loan requires lots of paperwork, so you should spend some time getting your documents together. Click here for a list of typical loan documentation.