Thinking about financing your home?

Applying for a mortgage loan is one of the most distressing aspects of buying a home, but it doesn't have to be. Being close with several mortgage lenders in the Santa Barbara area has helped me recognize a few things that will make the loan application process uncomplicated.

1 – Create a list of questions about your loan program

Be sure to bring a list of questions with you if you find that you do not totally comprehend the advantages and disadvantages of all the various programs. It's a challenge to know the differences between fixed and adjustable rate mortgages. I or one of my lenders will help you understand the advantages and disadvantages of each program.

2 – Decide when you want to lock

By locking in an interest rate, your mortgage lender is keeping to the interest rates for the loan – generally at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between application and issuance of closing documents. Those who choose to float believe that interest rates will drop 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

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

4 – Bring your paperwork

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