Are you financing a new home?

Applying for a loan can be one of the most exasperating parts of buying a home, but it doesn't have to be. I have a close relationship with many lenders in the Bakersfield area, and they've helped me realize a few things that will make the process of applying for a loan pretty simple.

1 – Make a list of questions about your loan program

If you find that you do not completely understand the advantages and disadvantages of all the various loan programs, be sure you bring a list of questions with you. I or one of my trusted lenders will be able to help you understand the advantages and disadvantages of both programs, because it can be hard to know the characteristics of fixed and adjustable rate mortgages.

2 – Determine when you want to lock

When you lock in the rate, it indicates that a mortgage lender commits to the mortgage interest rates for the loan – most often 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 decide to float presume 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 reduce your interest rate

When you opt to pay additional points to lower the rate of your mortgage loan, you will do so by paying for them in cash at the time of closing. Each point is 1 percent of the loan. If you're unsure as to whether or not purchasing points is the best option for you, click here to use our points calculator.

4 – Gather your paperwork

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