1 – Create a list of questions regarding your loan program
Be sure to bring a list of questions if you do not perfectly grasp the pros and cons of the various loan programs.
I or one of my trusted lenders will be able to assist you with understanding the advantages and disadvantages of each one, because it is a challenge to know the distinctions between fixed and adjustable rate mortgages.
2 – Determine when you want to lock
When you lock in the rate, it means that the lender guarantees the interest rates for the loan – often at the time the loan application is submitted.
By floating the rate, you can lock the rate at any time between the day of your loan application and at the time of closing. Those who decide to float conclude that the interest rates will decline 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
Usually you can choose to pay additional points to lower the interest rate of your mortgage loan. Every point is 1 percent of the loan and is payable in cash at the time of closing.
Click here to use our points calculator. It will help you decide if purchasing points is the best option for you.
4 – Gather your paperwork
Getting a mortgage loan requires lots of paperwork, so you should take some time to get all your documents together. Click here to see general questions you'll have to answer on a loan app.