1 – Make a list of questions about your loan program
If you do not entirely understand the ins and outs of the different financing options, make sure to have a list of questions with you.
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 hard to know the distinctions between fixed and adjustable rate mortgages.
2 – Decide when to lock
When you lock in a rate, your mortgage lender is guaranteed to commit to the mortgage interest rates for the loan – ordinarily at the time the loan application is submitted.
By floating the rate, you can lock the rate at any time between application and issuance of closing documents. Those who opt to float conclude interest rates will dip 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 rate
Usually you can choose to pay additional points to lower the rate of your loan. Each point is 1 percent of the loan and is payable in cash at closing.
To decide if you should buy points, click here to use our points calculator.
4 – Gather your paperwork
Obtaining a loan requires lots of paperwork, so you should spend some time getting your documents together. Click here to preview general questions you'll have to answer on a loan app.