1 – Create a list of questions regarding your loan program
If you do not completely comprehend the pros and cons of the various programs, be sure you bring a list of questions.
I or one of my trusted lenders will be able to assist you in understanding the advantages and disadvantages of each one, because it is a challenge to know the distinctions between both fixed and adjustable rate mortgages.
2 – Decide when to lock
When you lock in the rate, a lender is sure to hold to the mortgage interest rates for the loan – commonly at the time the loan application is submitted.
By floating the rate, you can lock the rate at any time between the day you apply for the loan and closing. Those who opt to float believe interest rates will plunge 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 reduce your interest rate
Generally you can opt to pay additional points to lower the rate of your mortgage loan. Every point is 1 percent of the mortgage loan and is payable in cash at the time of closing.
Click here to use our points calculator. This tool will help you decide if purchasing points is the best option for you.
4 – Bring 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 preview general questions you'll have to answer on a loan app.