Are you going to finance your new home?

When buying a home, applying for financing is exasperating for many people, but it doesn't have to be. I'm pretty close to many mortgage lenders in the Castro Valley area, and they've helped me learn some things that can make the loan application process pretty simple.

1 – Organize a list of questions about your loan program

Make sure you have a list of questions with you if you find that you do not fully understand the advantages and disadvantages of all the different loan programs. It's hard to know the distinctions between both fixed and adjustable rate mortgages. I or one of my trusted lenders will help you understand the advantages and disadvantages of each one.

2 – Decide when to lock

By locking in the rate, your mortgage lender is committing to the 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 application and closing. Those who elect to float conclude that interest rates will dip 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 choose to pay additional points to lower the interest rate of your mortgage loan, you'll pay for them in cash at closing. Every point is 1 percent of the mortgage loan. To decide if purchasing points is right for you, click here to use our points calculator.

4 – Compile your paperwork

Obtaining a mortgage loan requires lots of paperwork, so you should spend some time getting your documentation together. Click here for a list of normal loan documentation.

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