1 – Assemble a list of questions about your loan programIf you find that you don't thoroughly understand the ins and outs of the various loan programs, be sure you bring a list of questions with you. I or one of my lender contacts will assist you in understanding the advantages and disadvantages of both programs, because it is hard to understand the characteristics of fixed and adjustable rate mortgages.
2 – Determine when you want to lockBy locking in a rate, your lender is keeping to the interest rates for the loan – normally at the time the loan application is received. By floating the rate, you can lock the rate at any time between the day you apply for the loan and at the time of closing. Those who elect to float think 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 lower your rateOftentimes you can decide to pay additional points to lower the interest rate of your mortgage loan. Each point is 1 percent of the loan and is payable in cash at closing. If you're undecided on whether or not buying points is right for you, click here to use our points calculator.
4 – Bring your paperworkAcquiring a mortgage loan requires lots of paperwork, so you should spend some time getting all your documents together. Click here to get a feel for typical information that goes on a loan application.