Are you going to finance your new home?

When buying a home, applying for the mortgage loan is a very stressful event for many people, but it doesn't have to be. I'm pretty close to several lending companies in the Covina area, and they've helped me realize a few things that make the loan application process pretty simple.

1 – Make a list of questions about your loan program

If you don't entirely understand the ins and outs of the different programs, be sure to bring a list of questions with you. It is hard to understand the characteristics of both fixed and adjustable rate mortgages. I or one of my lender contacts will assist you with understanding the advantages and disadvantages of each one.

2 – Decide when to lock

Locking in an interest rate means that the lender guarantees the interest rates for the loan – most often at the time the loan application is received. By floating the rate, you can lock the rate at any time between the day you apply for the loan and closing. Those who elect to float think that 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

Generally you can decide 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. To decide if purchasing points is right for you, click here to use our points calculator.

4 – Bring your paperwork

Obtaining a loan requires lots of paperwork, so you should spend some time getting all your documentation together. Click here to get a list of normal loan documentation.

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