Applying for your loan

Applying for financing can be one of the most demanding elements of buying a house, but it doesn't have to be. Being connected to several lending companies in Oakland has helped me learn a few things that will make the loan application process very easy.

1 – Compile a list of questions regarding your loan program

If you don't thoroughly realize the advantages and disadvantages of all the different programs, make sure you have a list of questions with you. I or one of my lenders will assist you in understanding the advantages and disadvantages of both programs, because it can be hard to know the characteristics of both fixed and adjustable rate mortgages.

2 – Determine when you want to lock

When you lock in a rate, it signifies that a mortgage lender commits to the mortgage 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 application and closing. Buyers who choose to float presume that the interest rates will decline 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 decrease your interest rate

If you opt to pay additional points to lower the rate of your loan, you'll pay for them in cash at closing. Each point is 1 percent of the mortgage loan. To decide if you should purchase points, click here to use our points calculator.

4 – Compile your paperwork

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