Excel Funding Real Estate Services, Inc. can assist you in financing a new home.

For most people, applying for the mortgage loan can be one of the more troublesome aspects of buying a home, but it doesn't have to be. I'm close with some mortgage lenders in Rancho Palos Verdes, and they've helped me understand a few things that make the process of applying for a loan effortless.

1 – Create a list of questions about your loan program

Be sure to bring a list of questions with you if you find that you do not totally understand the advantages and disadvantages of the different programs. I or one of my lender contacts will be able to assist you with understanding the advantages and disadvantages of both programs, because it can be hard to know the differences between fixed and adjustable rate mortgages.

2 – Determine when to lock

When you lock in an interest rate, a lender is guaranteed to commit to the mortgage interest rates for the loan – most often at the time the loan application is sent in. By floating the rate, you can lock the rate anytime between the day you apply for your loan and issuance of closing documents. Buyers who opt to float presume 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 reduce your rate

When you decide to pay additional points to lower the interest 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 undecided as to whether or not purchasing points is right for you, click here to use our points calculator.

4 – Gather your paperwork

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