Thinking of financing your new home in Rancho Palos Verdes?

Applying for financing can be one of the most demanding aspects of purchasing a home, but it doesn't have to be. I'm very well-connected to various lending companies in Rancho Palos Verdes, and they've helped me recognize a few things that make the loan application process uncomplicated.

1 – Compile a list of questions regarding your loan program

If you find that you don't perfectly realize the pros and cons of all the different programs, be sure to bring a list of questions. I or one of my trusted lenders will help you understand the advantages and disadvantages of both programs, because it is a challenge to know the characteristics of fixed and adjustable rate mortgages.

2 – Determine when you want to lock

Locking in the interest rate signifies that the lender keeps to the interest rates for the loan – ordinarily at the time the loan application is sent in. By floating the rate, you can lock the rate at any time between application and closing. Those who opt 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 – Decide if you want to pay additional points to reduce your interest rate

Oftentimes you can opt to pay additional points to lower the rate of your mortgage loan. Each point is 1 percent of the mortgage loan and is payable in cash at the time of closing. Click here to use our points calculator. It will assist you with determining if purchasing points is the best option for you.

4 – Bring your paperwork

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