1 – Create a list of questions regarding your loan programBe sure you have a list of questions with you if you do not totally comprehend the pros and cons of all the various programs. I or one of my lenders can assist you in understanding the advantages and disadvantages of both programs, because it can be hard to know the distinctions between both fixed and adjustable rate mortgages.
2 – Determine when you want to lockWhen you lock in the interest rate, it denotes that your lender holds to the mortgage interest rates for the loan – ordinarily at the time the loan application is sent in. By floating the rate, you can lock the rate anytime between application and the issuing of closing documents. Those who prefer 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 rateNormally you can elect 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 uncertain as to whether or not purchasing points is right for you, click here to use our points calculator.
4 – Gather your paperworkObtaining a loan requires lots of paperwork, so you should spend some time getting all your documents together. Click here to preview general information that goes on a loan application.