Applying for your loan in San Diego with help from American Dream Corporation dba ADC Realty
Applying for the mortgage loan can be one of the most stressful parts of purchasing a home for a buyer, but it doesn't have to be.
I'm well-connected with some lending companies in San Diego, and they've helped me understand a few things that make the loan application process a snap.
1 – Assemble a list of questions about your loan program
Be sure to have a list of questions if you find that you don't completely understand the ins and outs of all the various loan programs.
It can be a challenge to know the characteristics of fixed and adjustable rate mortgages. I or one of my lenders will be able to assist you with understanding the advantages and disadvantages of each one.
2 – Determine when to lock
When you lock in a rate, the mortgage lender is sure to keep to the mortgage interest rates for the loan – generally at the time the loan application is presented.
By floating the rate, you can lock the rate anytime between the day you apply for the loan and the issuing of closing documents. Buyers who elect to float think that 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 reduce your interest rate
When you decide to pay additional points to lower the interest rate of your loan, you'll do so by paying for them in cash at the time of closing. Every point is 1 percent of the loan.
Click here to use our points calculator. This tool will assist you in determining if purchasing points is the best option for you.
4 – Compile your paperwork
Obtaining a loan requires lots of paperwork, so you should spend some time getting all your documentation together. Click here for a list of normal loan documentation.