1 – Make a list of questions about your loan programMake sure you have a list of questions if you do not entirely grasp the ins and outs of all the different loan programs. I or one of my trusted lenders can assist you with understanding the advantages and disadvantages of each program, because it's hard to know the distinctions between both fixed and adjustable rate mortgages.
2 – Decide when you want to lockLocking in an interest rate designates that a mortgage lender guarantees the interest rates for the loan – typically at the time the loan application is presented. By floating the rate, you can lock the rate anytime between the day you apply for your loan and issuance of closing documents. Those who opt to float conclude interest rates will drop 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 rateIf you choose to pay additional points to lower the interest rate of your mortgage loan, you'll do so by paying for them in cash at closing. Each point is 1 percent of the mortgage loan. If you're undecided on whether or not purchasing points is right for you, click here to use our points calculator.
4 – Bring your paperworkObtaining a mortgage loan requires lots of paperwork, so you should take some time to get all your documents together. Click here to see normal information that goes on a loan application.