Thinking of financing your home?
Applying for mortgage financing can be one of the most exasperating aspects of purchasing a home, but it doesn't have to be.
Being familiar with many lenders in San Diego has helped me recognize a few things that will make the process of applying for a loan a breeze.
1 – Create a list of questions regarding your loan program
If you find that you do not fully understand the pros and cons of the different programs, make sure to bring a list of questions with you.
I or one of my trusted lenders will assist you with understanding the advantages and disadvantages of each one, because it is hard to know the distinctions between fixed and adjustable rate mortgages.
2 – Decide when you want to lock
When you lock in an interest rate, the lender is guaranteed to keep to the interest rates for the loan – usually at the time the loan application is received.
By floating the rate, you can lock the rate anytime between the loan application day and at the time of closing. Those who elect to float conclude that interest rates will plunge 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 lower your rate
When you decide to pay additional points to lower the rate of your mortgage loan, you'll pay for them in cash at closing. Each point is 1 percent of the mortgage loan.
If you're not sure if buying points is right for you, click here to use our points calculator.
4 – Gather your paperwork
Obtaining a loan requires a lot of paperwork, so you should take some time to get all your documents together. Click here to get a list of normal loan documentation.