1 – Compile a list of questions about your loan programIf you don't entirely understand the advantages and disadvantages of all the different financing options, be sure you bring a list of questions. I or one of my lender contacts will assist you with understanding the advantages and disadvantages of each program, because it is a challenge to understand the characteristics of both fixed and adjustable rate mortgages.
2 – Decide when you want to lockWhen you lock in a rate, your lender is sure to hold to the interest rates for the loan – usually at the time the loan application is sent in. 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 choose to float believe interest rates will fall 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 rateUsually you can choose to pay additional points to lower the rate of your loan. Every point is 1 percent of the mortgage loan and is payable in cash at closing. If you're uncertain if 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 get a feel for typical questions you'll have to answer on a loan app.