1 – Create a list of questions regarding your loan programBe sure you have a list of questions if you don't entirely comprehend the pros and cons of all the different loan programs. One of my lender contacts can assist you in understanding the advantages and disadvantages of both programs, because it's hard to understand the distinctions between fixed and adjustable rate mortgages.
2 – Decide when to lockLocking in the interest rate denotes that the lender guarantees the mortgage interest rates for the loan – often at the time the loan application is presented. By floating the rate, you can lock the rate anytime between the day you apply for your loan and closing. Those who choose to float presume 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 interest rateOftentimes you can choose to pay additional points to lower the rate of your loan. Every point is 1 percent of the loan and is payable in cash at closing. To determine if purchasing points is the best option for you, click here to use our points calculator.
4 – Bring your paperworkGetting a loan requires lots of paperwork, so you should take some time to get all your documents together required by the lender and loan officer.