1 – Compile a list of questions about your loan program
Make sure you have a list of questions if you do not perfectly understand the pros and cons of all the various loan programs.
I or one of my trusted lenders will assist you in understanding the advantages and disadvantages of each one, because it can be a challenge to know the distinctions between fixed and adjustable rate mortgages.
2 – Determine when you want to lock
Locking in the rate means that the lender commits to the interest rates for the loan – generally at the time the loan application is sent in.
By floating the rate, you can lock the rate at any time between the loan application day and at the time of closing. Those who prefer to float think the interest rates will dip 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
If you choose to pay additional points to lower the rate of your mortgage loan, you'll pay for them in cash at the time of closing. Each point is 1 percent of the mortgage 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
Acquiring a mortgage loan requires lots of paperwork, so you should spend some time getting all your documents together. Click here to preview general information that goes on a loan application.