1 – Compile a list of questions regarding your loan program
If you don't perfectly understand the pros and cons of the various loan programs, make sure to have a list of questions with you.
Oftentimes, it can be a challenge understanding the characteristics of fixed and adjustable rate mortgages. I or one of my lenders will be able to assist you in understanding the advantages and disadvantages of each one.
2 – Determine when to lock
When you lock in the rate, it signifies that your mortgage lender keeps to the mortgage interest rates for the loan – commonly at the time the loan application is received.
By floating the rate, you can lock the rate at any time between the day you apply for the loan and the issuing of closing documents. Buyers who opt to float conclude that interest rates will fall 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 reduce your rate
Oftentimes you can opt 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 closing.
Click here to use our points calculator. This tool will help you determine if buying points is right for you.
4 – Bring your paperwork
Acquiring a mortgage loan requires lots of paperwork, so you should take some time to get your documents together. Click here to see typical information that goes on a loan application.