Thinking of financing your new home in Stockton?

When purchasing a home, applying for a mortgage loan is a stressful event for most people, but it doesn't have to be. I'm connected with some lending companies in Stockton, and they've helped me understand a few things that can make the loan application process much easier.

1 – Make a list of questions regarding your loan program

Make sure to have a list of questions with you if you don't completely realize the ins and outs of the various programs. I or one of my lender contacts will be able to help you understand the advantages and disadvantages of each program, because it can be a challenge to know the differences between fixed and adjustable rate mortgages.

2 – Decide when to lock

Locking in designates that a lender holds to the interest rates for the loan – commonly at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between the day of your loan application and issuance of closing documents. Those who opt to float think the interest rates will drop 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 decrease your rate

Generally you can opt to pay additional points to lower the interest rate of your loan. Every 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 help you decide if buying points is right for you.

4 – Gather your paperwork

Acquiring a mortgage loan requires a lot of paperwork, so you should take some time to get all your documentation together. Click here for a list of general loan documentation.