Applying for your loan

A lot of buyers think applying for a loan is one of the most exasperating aspects of purchasing a home, but it doesn't have to be. I'm pretty connected to several lending companies in Milpitas, and they've helped me recognize some things that will make the process of applying for a loan a snap.

1 – Make a list of questions about your loan program

If you find that you don't fully realize the ins and outs of the different loan programs, be sure to bring a list of questions with you. Oftentimes, it can be hard to know the distinctions between fixed and adjustable rate mortgages. I or one of my lenders can help you understand the advantages and disadvantages of each.

2 – Determine when to lock

By locking in an interest rate, your lender is guaranteeing the mortgage interest rates for the loan – commonly at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the day you apply for the loan and closing. Those who opt to float presume the 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 reduce your rate

Typically you can decide to pay additional points to lower the rate of your loan. Each point is 1 percent of the loan and is payable in cash at the time of closing. Click here to use our points calculator. This tool will assist you in determining if buying points is right for you.

4 – Compile your paperwork

Acquiring a loan requires lots of paperwork, so you should take some time to get all your documents together. Click here for a list of normal loan documentation.

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