Are you financing a new home?

Many people think that applying for the mortgage loan is one of the most troublesome parts of buying a home, but it doesn't have to be. I have a close relationship with various mortgage lenders in the Bakersfield area, and they've helped me realize some things that will make the process of applying for a loan a snap.

1 – Make a list of questions regarding your loan program

Make sure to bring a list of questions if you do not thoroughly realize the pros and cons of all the different programs. It is a challenge to know the distinctions between fixed and adjustable rate mortgages. I or one of my lender contacts can assist you with understanding the advantages and disadvantages of both programs.

2 – Decide when you want to lock

Locking in a rate denotes that a lender holds to the interest rates for the loan – usually at the time the loan application is received. By floating the rate, you can lock the rate anytime between the day you apply for your loan and issuance of closing documents. Buyers who choose to float presume the interest rates will plunge in the near future. Click here to see the outlook for the next 90 days of interest rates.

3 – Decide if you want to pay additional points to decrease your interest rate

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

4 – Bring your paperwork

Acquiring a mortgage loan requires a lot of paperwork, so you should spend some time getting your documents together. Click here to get a list of normal loan documentation.