Applying for a loan

When purchasing a home, applying for the mortgage loan is distressing for many people, but it doesn't have to be. I have a close relationship with a lot of lenders in the Oakland area, and they've helped me understand some things that can make the loan application process a breeze.

1 – Organize a list of questions about your loan program

If you don't totally comprehend the advantages and disadvantages of all the different programs, make sure to have a list of questions with you. It is often hard to know the distinctions between both fixed and adjustable rate mortgages. I or one of my lender contacts will help you understand the advantages and disadvantages of both.

2 – Decide when to lock

When you lock in the interest rate, your lender is guaranteed to commit to the interest rates for the loan – typically at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the loan application day and closing. Buyers who choose to float believe that the 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 rate

If you choose to pay additional points to lower the 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 help you decide if purchasing points is right for you.

4 – Compile your paperwork

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