Let Goodwin & Thyne Properties assist you in financing your new home.

When buying a home, applying for a mortgage loan is very troublesome for many people, but it doesn't have to be. I have a close business relationship with several lending companies in the Santa Barbara area, and they've helped me realize some things that make the loan application process easy.

1 – Make a list of questions regarding your loan program

If you do not entirely realize the ins and outs of all the different programs, be sure you bring a list of questions with you. I or one of my trusted lenders will assist you with understanding the advantages and disadvantages of each one, because it is hard to know the characteristics of both fixed and adjustable rate mortgages.

2 – Determine when to lock

When you lock in the interest rate, your mortgage lender is guaranteed to hold to the interest rates for the loan – most often at the time the loan application is sent in. By floating the rate, you can lock the rate anytime between the day of your loan application and issuance of closing documents. Those who choose to float believe the interest rates will plunge 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 rate

If you choose to pay additional points to lower the interest rate of your loan, you will do so by paying for them in cash at closing. Each point is 1 percent of the mortgage loan. Click here to use our points calculator. It will help you determine if purchasing points is the best option for you.

4 – Compile your paperwork

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