1 – Create a list of questions about your loan programIf you find that you do not fully understand the pros and cons of the different financing options, be sure you have a list of questions. I or one of my lenders will assist you with understanding the advantages and disadvantages of each one, because it's a challenge to know the characteristics of fixed and adjustable rate mortgages.
2 – Determine when you want to lockWhen you lock in a rate, a lender is guaranteed to hold to the interest rates for the loan – usually at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the day you apply for your loan and the issuing of closing documents. Those who choose to float conclude interest rates will dip 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 decrease your rateTypically you can choose to pay additional points to lower the rate of your loan. Each point is 1 percent of the loan and is payable in cash at closing. To decide if you should buy points, click here to use our points calculator.
4 – Gather your paperworkAcquiring a loan requires a lot of paperwork, so you should take some time to get all your documents together. Click here to see common questions you'll have to answer on a loan app.