1 – Create a list of questions about your loan program
If you find that you don't totally comprehend the pros and cons of all the different financing options, be sure you bring a list of questions.
It's a challenge to understand the distinctions between both fixed and adjustable rate mortgages. I or one of my lender contacts can assist you in understanding the advantages and disadvantages of each program.
2 – Decide when to lock
Locking in an interest rate indicates that a mortgage lender holds to the mortgage interest rates for the loan – usually 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 your loan and at the time of closing. Buyers who elect to float think that 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 decrease your interest rate
When you choose to pay additional points to lower the rate of your mortgage loan, you will pay for them in cash at the time of closing. Each point is 1 percent of the mortgage loan.
Click here to use our points calculator. This tool will help you decide if buying points is right for you.
4 – Compile your paperwork
Obtaining a mortgage loan requires a lot of paperwork, so you should take some time to get all your documents together. Click here to get a feel for typical questions you'll have to answer on a loan app.