1 – Assemble a list of questions about your loan program
Make sure you have a list of questions with you if you don't perfectly understand the pros and cons of the different programs.
I or one of my lenders will assist you with understanding the advantages and disadvantages of each one, because it can be hard to know the differences between both fixed and adjustable rate mortgages.
2 – Decide when to lock
By locking in an interest rate, the lender is guaranteeing the interest rates for the loan – commonly at the time the loan application is sent in.
By floating the rate, you can lock the rate anytime between the day you apply for your loan and the issuing of closing documents. Those who elect to float presume that the interest rates will drop 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 interest rate
Oftentimes you can decide to pay additional points to lower the interest rate of your 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 determine if purchasing points is the best option for you.
4 – Gather your paperwork
Obtaining a loan requires a lot of paperwork, so you should spend some time getting your documents together. Click here to get a feel for general questions you'll have to answer on a loan app.