For many buyers, applying for the mortgage loan is one of the more stressful aspects of buying a home. The loan application need not be a stressful time. By following a few easy steps, you'll sail through the loan application process.

1. Make a list of any questions you have about the loan program.
   Be sure you understand the advantages and disadvantages of the various mortgage programs for which you may qualify, including the advantages and disadvantages of Fixed Rate Mortgages versus Adjustable Rate Mortgages. Depending on the lender, there are literally 100's of loan programs in California, and it's important to feel confident in the lender or lender-broker you are working with. I have used Robert Clark from Wells Fargo for years. If you are not working with anyone in particular, please feel free to give him a call at 805.302.9444.

2. Decide if you want to lock-in or float the loan's interest rate.
   Locking-in the rate means that the lender commits to the mortgage interest rate for the loan - typically at the time the loan application is submitted. By floating the rate, you can lock-in the interest rate anytime between the loan application day and closing. Buyers opt to "float the loan" when they believe interest rates will drop after their loan application date and prior to closing. The risk is that rather than dropping, interest rates may rise, increasing the mortgage payment.

3. Decide if you want to pay additional points to lower your interest rate.
   Typically you can elect to pay additional points (each point is 1 percent of the mortgage loan payable in cash at closing) to lower the interest rate of your mortgage loan.

4. Gather your paperwork. Then call me - at 805.794.7323