Are you looking to finance a new home?

For a lot of people, applying for a loan is one of the most stressful parts of purchasing a home, but it doesn't have to be. I'm close with many mortgage lenders in the Oakland area, and they've helped me learn some things that can make the process of applying for a loan uncomplicated.

1 – Organize a list of questions about your loan program

If you find that you do not fully realize the advantages and disadvantages of all the various programs, make sure to bring a list of questions with you. At times, it can be hard to know the differences between both fixed and adjustable rate mortgages. I or one of my lender contacts can assist you in understanding the advantages and disadvantages of both programs.

2 – Determine when you want to lock

Locking in the interest rate indicates that a mortgage lender keeps to the mortgage interest rates for the loan – generally at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between the day you apply for the loan and closing. Those who opt 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 – Determine if you want to pay additional points to lower your interest rate

Usually you can elect to pay additional points to lower the rate of your loan. Each point is 1 percent of the mortgage loan and is payable in cash at closing. To determine if purchasing points is the best option for you, 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 all your documentation together. Click here for a list of typical loan documentation.