Looking to finance a new home?

Applying for a loan can be one of the most demanding parts of purchasing a home, but it doesn't have to be. I have a close relationship with some lending companies in the Vista area, and they've helped me learn some things that can make the loan application process pretty simple.

1 – Compile a list of questions about your loan program

If you find that you don't totally realize the advantages and disadvantages of the different programs, be sure to bring a list of questions. I or one of my lender contacts will assist you with understanding the advantages and disadvantages of both programs, because it's a challenge to understand the distinctions between both fixed and adjustable rate mortgages.

2 – Decide when to lock

Locking in signifies that the mortgage lender guarantees the interest rates for the loan – typically at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the day you apply for the loan and closing. Those who decide to float think that the interest rates will fall 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 lower your rate

Normally you can choose to pay additional points to lower the rate of your loan. Each point is 1 percent of the mortgage loan and is payable in cash at closing. To determine if purchasing points is the best option for you, click here to use our points calculator.

4 – Bring your paperwork

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