1 – Assemble a list of questions about your loan program
Make sure you have a list of questions with you if you find that you don't perfectly grasp the advantages and disadvantages of the different loan programs.
I or one of my lenders will be able to assist you with understanding the advantages and disadvantages of each one, because it is a challenge to know the characteristics of both fixed and adjustable rate mortgages.
2 – Decide when you want to lock
Locking in the rate signifies that your lender guarantees the mortgage interest rates for the loan – commonly at the time the loan application is received.
By floating the rate, you can lock the rate anytime between the loan application day and at the time of closing. Those who prefer to float think that the interest rates will dip 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 lower your interest rate
When you opt to pay additional points to lower the rate of your loan, you'll pay for them in cash at closing. Every point is 1 percent of the loan.
If you're unsure if buying points is the best option for you, click here to use our points calculator.
4 – Gather your paperwork
Obtaining a mortgage loan requires lots of paperwork, so you should take some time to get all your documentation together. Click here to see common questions you'll have to answer on a loan app.