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

When buying a home, applying for a mortgage loan is stressful for many people, but it doesn't have to be. Being connected with several lenders in the Rancho Palos Verdes area has helped me realize some things that make the loan application process very manageable.

1 – Compile a list of questions about your loan program

If you don't totally understand the advantages and disadvantages of all the various loan programs, be sure you have a list of questions with you. It is often a challenge to know the characteristics of fixed and adjustable rate mortgages. I or one of my trusted lenders will be able to assist you in understanding the advantages and disadvantages of both.

2 – Determine when to lock

Locking in the interest rate indicates that your mortgage lender guarantees the mortgage interest rates for the loan – normally at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the day you apply for the loan and at the time of closing. Those who prefer to float presume 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

Generally you can choose to pay additional points to lower the interest rate of your mortgage loan. Every point is 1 percent of the loan and is payable in cash at the time of closing. To determine if buying points is right for you, click here to use our points calculator.

4 – Compile your paperwork

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