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

Applying for the mortgage loan can be one of the most troublesome aspects of purchasing a house, but it doesn't have to be. I have a close relationship with various mortgage lenders in Rancho Palos Verdes, and they've helped me understand some things that will make the loan application process easy.

1 – Compile a list of questions regarding your loan program

If you don't totally understand the ins and outs of all the different loan programs, be sure you bring a list of questions. I or one of my trusted lenders will assist you in understanding the advantages and disadvantages of each one, because it's a challenge to understand the differences between both fixed and adjustable rate mortgages.

2 – Determine when you want to lock

When you lock in the interest rate, it designates that the mortgage lender keeps to the interest rates for the loan – commonly at the time the loan application is presented. By floating the rate, you can lock the rate anytime between the day you apply for the loan and the issuing of closing documents. Buyers who prefer to float think the interest rates will dip in the near future. Click here to see the outlook for the next 90 days of interest rates.

3 – Decide if you want to pay additional points to decrease your interest rate

Oftentimes you can elect to pay additional points to lower the rate of your mortgage loan. Each point is 1 percent of the loan and is payable in cash at the time of closing. Click here to use our points calculator. This tool will help you decide if buying points is the best option for you.

4 – Gather your paperwork

Obtaining a loan requires a lot of paperwork, so you should spend some time getting all your documents together. Click here to get a list of typical loan documentation.