Are you going to finance a home in Santa Barbara?

When purchasing a home, applying for a loan is demanding for a lot of people, but it doesn't have to be. Having connections with some mortgage lenders in Santa Barbara has helped me recognize a few things that make the loan application process a breeze.

1 – Organize a list of questions regarding your loan program

Make sure to have a list of questions if you find that you don't thoroughly realize the pros and cons of all the different programs. I or one of my trusted lenders will help you understand the advantages and disadvantages of both programs, because it is hard to know the characteristics of both fixed and adjustable rate mortgages.

2 – Decide when to lock

By locking in the rate, the lender is holding to the interest rates for the loan – most often at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the loan application day and closing. Buyers who opt to float believe 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 reduce your interest rate

When you opt to pay additional points to lower the rate of your loan, you'll pay for them in cash at the time of closing. Each point is 1 percent of the loan. Click here to use our points calculator. It will help you decide if purchasing points is the best option for you.

4 – Compile your paperwork

Acquiring a loan requires a lot of paperwork, so you should take some time to get your documents together. Click here to get a list of general loan documentation.