Applying for a new home loan

Most buyers think applying for the loan is one of the more demanding aspects of buying a home, but it doesn't have to be. Having connections to some mortgage lenders in Bakersfield has helped me recognize some things that can make the loan application process a breeze.

1 – Assemble a list of questions regarding your loan program

If you do not fully understand the ins and outs of all the various loan programs, make sure to bring a list of questions. I or one of my trusted lenders can help you understand the advantages and disadvantages of each one, because it's hard to understand the characteristics of both fixed and adjustable rate mortgages.

2 – Determine when you want to lock

When you lock in a rate, it designates that your mortgage lender commits to the mortgage interest rates for the loan – usually at the time the loan application is sent in. By floating the rate, you can lock the rate anytime between application and issuance of closing documents. Those who elect to float think interest rates will drop 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 decrease 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 loan and is payable in cash at closing. To decide if you should purchase points, 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 your documentation together. Click here for a list of general loan documentation.