Applying for a new home loan with help from Fenton Real Estate

Many buyers think that applying for financing is one of the more troublesome aspects of purchasing a home, but it doesn't have to be. I have a close relationship with several lending companies in Bakersfield, and they've helped me recognize some things that make the process of applying for a loan a snap.

1 – Assemble a list of questions regarding your loan program

If you find that you don't fully understand the advantages and disadvantages of the various loan programs, be sure to have a list of questions with you. It is often a challenge understanding the distinctions between fixed and adjustable rate mortgages. I or one of my lenders will help you understand the advantages and disadvantages of each.

2 – Decide when you want to lock

By locking in the rate, the lender is keeping to the mortgage interest rates for the loan – ordinarily at the time the loan application is received. By floating the rate, you can lock the rate at any time between the day of your loan application and at the time of closing. Buyers who elect to float believe that interest rates will decline 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 lower your rate

Typically you can opt to pay additional points to lower the rate of your mortgage loan. Every point is 1 percent of the mortgage loan and is payable in cash at the time of closing. If you're uncertain as to whether or not buying points is right for you, click here to use our points calculator.

4 – Bring your paperwork

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