Looking to finance your new home?

For most people, applying for a mortgage loan is one of the most demanding parts of buying a home, but it doesn't have to be. I'm connected with a lot of mortgage lenders in the Santa Barbara area, and they've helped me recognize some things that can make the loan application process pretty simple.

1 – Compose a list of questions regarding your loan program

If you find that you don't totally realize the advantages and disadvantages of all the different loan programs, be sure to bring a list of questions. At times, it can be a challenge to understand the distinctions between both fixed and adjustable rate mortgages. I or one of my trusted lenders will assist you in understanding the advantages and disadvantages of both.

2 – Determine when you want to lock

When you lock in a rate, the lender is guaranteed to commit to the mortgage interest rates for the loan – typically at the time the loan application is received. 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 elect to float conclude that interest rates will decline 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 rate

If you elect to pay additional points to lower the rate of your mortgage 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. To determine if buying points is right for you, click here to use our points calculator.

4 – Bring your paperwork

Obtaining a loan requires a lot of paperwork, so you should spend some time getting all your documents together. Click here to get a list of normal loan documentation.