1 – Assemble a list of questions about your loan program
If you do not completely comprehend the advantages and disadvantages of all the different loan programs, be sure to have a list of questions. One of my lender contacts or I will assist you with understanding the advantages and disadvantages of both programs, because it is hard to understand the characteristics of fixed and adjustable rate mortgages.
2 – Decide when you want to lock
When you lock in a rate, it signifies that your lender commits to the mortgage interest rates for the loan – typically at the time the loan application is received. By floating the rate, you can lock the rate anytime between the day of your loan application and at the time of closing. Those who prefer to float believe that 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 reduce your rate
Generally you can decide to pay additional points to lower the interest rate of your loan. Every point is 1 percent of the mortgage loan and is payable in cash at the time of closing. To determine if buying points is right for you, click here to use my points calculator.
4 – Compile 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 normal information that goes on a loan application.