Are you thinking of financing a new home in Santa Barbara? Goodwin & Thyne Properties can help.

When buying a home, applying for the loan is very distressing for many people, but it doesn't have to be. I'm pretty connected with various lenders in the Santa Barbara area, and they've helped me realize a few things that will make the loan application process a breeze.

1 – Organize a list of questions about your loan program

Be sure to have a list of questions if you don't thoroughly comprehend the ins and outs of the different programs. I or one of my lenders can assist you with understanding the advantages and disadvantages of each program, because it is a challenge to know the differences between both fixed and adjustable rate mortgages.

2 – Determine when you want to lock

Locking in the rate means that a mortgage lender holds to the mortgage interest rates for the loan – normally at the time the loan application is sent in. By floating the rate, you can lock the rate anytime between the loan application day and the issuing of closing documents. Those who choose to float presume interest rates will fall 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 lower your interest rate

When you elect to pay additional points to lower the interest rate of your mortgage loan, you will do so by paying for them in cash at closing. Each point is 1 percent of the loan. If you're undecided as to whether or not buying points is the best option for you, click here to use our points calculator.

4 – Compile your paperwork

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