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

Applying for a mortgage loan is one of the most stressful aspects of buying a home for a buyer, but it doesn't have to be. I have a close business relationship with various lending companies in Rancho Palos Verdes, and they've helped me realize a few things that will make the process of applying for a loan pretty simple.

1 – Create a list of questions regarding your loan program

If you do not completely understand the advantages and disadvantages of the various programs, be sure you bring a list of questions with you. I or one of my lenders can assist you in understanding the advantages and disadvantages of each one, because it can be a challenge to understand the characteristics of fixed and adjustable rate mortgages.

2 – Determine when to lock

When you lock in a rate, it designates that the mortgage lender commits to the mortgage interest rates for the loan – normally at the time the loan application is sent in. By floating the rate, you can lock the rate at any time between application and at the time of closing. Buyers who prefer to float think the interest rates will decline 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 interest rate

When you decide to pay additional points to lower the rate of your loan, you'll do so by paying for them in cash at the time of closing. Each point is 1 percent of the mortgage loan. If you're uncertain if purchasing points is the best option for you, click here to use our points calculator.

4 – Gather your paperwork

Getting a mortgage loan requires lots of paperwork, so you should take some time to get your documentation together. Click here for a list of general loan documentation.