1 – Put together a list of questions regarding your loan program
Make sure you have a list of questions if you don't completely comprehend the advantages and disadvantages of all the different programs.
I or one of my trusted lenders can help you understand the advantages and disadvantages of both programs, because it's a challenge to understand the differences between fixed and adjustable rate mortgages.
2 – Decide when to lock
When you lock in an interest rate, the lender is sure to hold to the mortgage interest rates for the loan – normally at the time the loan application is presented.
By floating the rate, you can lock the rate at any time between application and issuance of closing documents. Buyers who elect to float presume that the interest rates will decline 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 lower your rate
When you elect to pay additional points to lower the interest rate of your loan, you will do so by paying for them in cash at the time of closing. Each point is 1 percent of the loan.
Click here to use our points calculator. It will help you decide if purchasing points is right for you.
4 – Gather your paperwork
Acquiring a mortgage loan requires a lot of paperwork, so you should spend some time getting your documents together. Click here to get a feel for normal questions you'll have to answer on a loan app.