1 – Create a list of questions about your loan programBe sure to bring a list of questions if you find that you don't fully understand the advantages and disadvantages of the different loan programs. Oftentimes, it can be a challenge to understand the characteristics of both fixed and adjustable rate mortgages. I or one of my lender contacts will be able to help you understand the advantages and disadvantages of each one.
2 – Decide when you want to lockBy locking in a rate, your mortgage lender is committing to the interest rates for the loan – most often at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between the day you apply for the loan and issuance of closing documents. Buyers who decide to float think the interest rates will drop in the near future. Click here to see the outlook for the next 90 days of interest rates.
3 – Determine if you want to pay additional points to decrease your rateNormally you can decide to pay additional points to lower the rate of your mortgage loan. Each point is 1 percent of the loan and is payable in cash at closing. To determine if you should buy points, click here to use our points calculator.
4 – Gather your paperworkAcquiring a loan requires lots of paperwork, so you should take some time to get your documents together. Click here to see typical information that goes on a loan application.