1 – Compile a list of questions regarding your loan program
If you find that you don't fully realize the ins and outs of all the various financing options, be sure you bring a list of questions.
I or one of my lenders can assist you with understanding the advantages and disadvantages of each one, because it is a challenge to understand the characteristics of fixed and adjustable rate mortgages.
2 – Decide when to lock
When you lock in an interest rate, a lender is guaranteed to commit to the interest rates for the loan – commonly at the time the loan application is sent in.
By floating the rate, you can lock the rate anytime between the day you apply for the loan and issuance of closing documents. Those who prefer to float think the 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 decrease your interest rate
If you opt to pay additional points to lower the rate of your mortgage loan, you will do so by paying for them in cash at the time of closing. Every point is 1 percent of the loan.
If you're undecided on whether or not buying points is right for you, click here to use our points calculator.
4 – Compile your paperwork
Getting a mortgage loan requires a lot of paperwork, so you should take some time to get your documents together. Click here to see common questions you'll have to answer on a loan app.