Are you going to finance a home?

For a lot of people, applying for a mortgage loan can be one of the most distressing parts of buying a home, but it doesn't have to be. I'm pretty familiar with several mortgage lenders in Bakersfield, and they've helped me recognize a few things that can make the process of applying for a loan pretty simple.

1 – Assemble a list of questions regarding your loan program

Be sure you bring a list of questions with you if you don't perfectly realize the pros and cons of the different programs. At times, it can be hard to know the differences between fixed and adjustable rate mortgages. I or one of my lender contacts will be able to assist you with understanding the advantages and disadvantages of each.

2 – Determine when to lock

By locking in the rate, the mortgage lender is holding to the mortgage interest rates for the loan – often at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the day you apply for your loan and the issuing of closing documents. Buyers who opt to float believe that interest rates will fall 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 interest rate

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

4 – Compile your paperwork

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