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

For a lot of people, applying for a mortgage loan is one of the most demanding aspects of purchasing a house, but it doesn't have to be. I have a close business relationship with a lot of lenders in the Rancho Palos Verdes area, and they've helped me realize some things that make the process of applying for a loan effortless.

1 – Assemble a list of questions about your loan program

Be sure to have a list of questions with you if you find that you do not entirely comprehend the ins and outs of all the different loan programs. It is a challenge to know the characteristics of fixed and adjustable rate mortgages. I or one of my lender contacts will assist you with understanding the advantages and disadvantages of both.

2 – Decide when you want to lock

When you lock in a rate, a lender is guaranteed to keep to the mortgage interest rates for the loan – usually at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the loan application day and the issuing of closing documents. Those who opt to float think 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 reduce your rate

Normally you can elect 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 closing. To determine if buying points is right for you, click here to use our points calculator.

4 – Gather your paperwork

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