Are you financing a new home?

Applying for the loan can be one of the most troublesome aspects of purchasing a home for a buyer, but it doesn't have to be. I'm close to some lending companies in Bakersfield, and they've helped me realize a few things that make the loan application process uncomplicated.

1 – Put together a list of questions regarding your loan program

Make sure you have a list of questions if you find that you don't perfectly comprehend the ins and outs of the different programs. I or one of my trusted lenders can help you understand the advantages and disadvantages of each one, because it is a challenge to understand the characteristics of both fixed and adjustable rate mortgages.

2 – Decide when you want to lock

By locking in the interest rate, a lender is guaranteeing the mortgage interest rates for the loan – ordinarily at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the day you apply for the loan and the issuing of closing documents. Those who prefer to float think 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

Normally you can elect to pay additional points to lower the rate of your mortgage loan. Every point is 1 percent of the loan and is payable in cash at closing. If you're uncertain if buying points is the best option for you, click here to use our points calculator.

4 – Gather your paperwork

Acquiring a loan requires a lot of paperwork, so you should spend some time getting all your documents together. Click here for a list of common loan documentation.