1 – Organize a list of questions regarding your loan programIf you don't thoroughly understand the pros and cons of the various loan programs, make sure you have a list of questions. I or one of my lenders can assist you with understanding the advantages and disadvantages of both programs, because it is a challenge to know the characteristics of fixed and adjustable rate mortgages.
2 – Determine when you want to lockWhen you lock in an interest rate, your mortgage lender is guaranteed to hold to the interest rates for the loan – normally at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between application and closing. Those who elect to float believe 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 reduce your rateIf you opt to pay additional points to lower the rate of your loan, you will do so by paying for them in cash at closing. Every point is 1 percent of the mortgage loan. Click here to use our points calculator. This tool will assist you with deciding if purchasing points is the best option for you.
4 – Gather your paperworkAcquiring 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 general information that goes on a loan application.