Do you want to finance your new home?

When buying a home, applying for financing is a very exasperating event for most people, but it doesn't have to be. I'm close with several mortgage lenders in Vista, and they've helped me recognize a few things that make the loan application process much easier.

1 – Organize a list of questions regarding your loan program

Make sure to have a list of questions with you if you don't perfectly realize the ins and outs of all the different programs. It is often hard to understand the distinctions between both fixed and adjustable rate mortgages. I or one of my lenders can assist you in understanding the advantages and disadvantages of both.

2 – Decide when to lock

When you lock in the interest rate, it designates that the lender keeps to the mortgage interest rates for the loan – most often at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the loan application day and closing. Buyers who opt to float believe 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 reduce your rate

If you elect to pay additional points to lower the interest rate of your loan, you will do so by paying for them in cash at the time of closing. Every point is 1 percent of the mortgage loan. Click here to use our points calculator. This tool will assist you with deciding if buying points is the best option 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 normal loan documentation.