Are you looking to finance a new home in Rancho Palos Verdes? Excel Funding Real Estate Services, Inc. can help.

Applying for mortgage financing is one of the most demanding elements of buying a house, but it doesn't have to be. Having connections to many lenders in Rancho Palos Verdes has helped me understand a few things that will make the process of applying for a loan a breeze.

1 – Put together a list of questions about your loan program

Be sure to have a list of questions if you find that you do not fully understand the pros and cons of all the various programs. At times, it can be a challenge understanding the differences between both fixed and adjustable rate mortgages. I or one of my lender contacts can help you understand the advantages and disadvantages of each one.

2 – Determine when to lock

By locking in an interest rate, a lender is committing to the interest rates for the loan – often at the time the loan application is presented. By floating the rate, you can lock the rate anytime between the loan application day and the issuing of closing documents. Buyers who prefer to float conclude that the 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 decrease your rate

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

4 – Bring your paperwork

Acquiring a mortgage loan requires lots of paperwork, so you should spend some time getting your documents together. Click here to get a list of general loan documentation.