1 – Make a list of questions regarding your loan program
If you find that you do not completely realize the pros and cons of all the various loan programs, make sure you have a list of questions.
It is often hard to know the characteristics of fixed and adjustable rate mortgages. I or one of my lender contacts will assist you in understanding the advantages and disadvantages of each one.
2 – Determine when you want to lock
When you lock in a rate, the mortgage lender is guaranteed to keep to the interest rates for the loan – normally at the time the loan application is sent in.
By floating the rate, you can lock the rate anytime between the day you apply for the loan and the issuing of closing documents. Buyers who decide to float conclude that the 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 decrease your interest rate
Normally you can decide to pay additional points to lower the interest rate of your loan. Each point is 1 percent of the mortgage loan and is payable in cash at the time of closing.
To determine if you should buy points, click here to use our points calculator.
4 – Bring your paperwork
Acquiring a mortgage loan requires a lot of paperwork, so you should take some time to get all your documents together. Click here to preview general information that goes on a loan application.