Do you want to finance your new home in Rancho Palos Verdes? Excel Funding Real Estate Services, Inc. can help.

When purchasing a home, applying for the loan is distressing for many people, but it doesn't have to be. I have a close relationship with several mortgage lenders in Rancho Palos Verdes, and they've helped me recognize a few things that make the loan application process much easier.

1 – Compile a list of questions regarding your loan program

Be sure you bring a list of questions if you find that you don't totally comprehend the advantages and disadvantages of the different loan programs. It can be hard to know the distinctions between both fixed and adjustable rate mortgages. I or one of my lender contacts will help you understand the advantages and disadvantages of each one.

2 – Determine when you want to lock

When you lock in the interest rate, your mortgage lender is guaranteed to commit to the mortgage interest rates for the loan – ordinarily 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 the issuing of closing documents. Those who choose to float presume the interest rates will drop 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 lower your rate

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

4 – Bring your paperwork

Getting a loan requires lots of paperwork, so you should spend some time getting your documentation together. Click here for a list of typical loan documentation.