1 – Create a list of questions regarding your loan program
If you do not completely comprehend the ins and outs of all the various financing options, be sure to bring a list of questions with you.
I or one of my lender contacts will be able to assist you in understanding the advantages and disadvantages of each program, because it is a challenge to understand the differences between fixed and adjustable rate mortgages.
2 – Determine when you want to lock
When you lock in the rate, the lender is guaranteed to commit to the mortgage interest rates for the loan – usually at the time the loan application is presented.
By floating the rate, you can lock the rate anytime between application and the issuing of closing documents. Those who choose to float believe that the 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 decrease your interest rate
Normally you can elect 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 the time of closing.
If you're unsure if purchasing points is the best option for you, click here to use our points calculator.
4 – Bring your paperwork
Acquiring a loan requires a lot of paperwork, so you should take some time to get your documentation together. Click here to see common questions you'll have to answer on a loan app.