Bentley Realty Group

1.  Make a list of any questions you have about the loan program.
     Be sure you understand the advantages and disadvantages of the various 
     mortgage programs for which you may qualify, including the advantages and
     disadvantages of Fixed Rate Mortgages versus Adjustable Rate Mortgages. 

2.  Decide if you want to lock-in or float the loan's interest rate.
      Locking-in the rate means that the lender commits to the mortgage interest
     rate for the loan - typically at the time the loan application is submitted. 
     By floating the rate, you can lock-in the interest rate any time between the
     loan application day and closing.  Buyers opt to "float the loan" when they
     believe interest rates willd rop after their loan application date and prior to
     closing.  The risk is that rather than dropping, interest rates may rise, 
     increasing the mortgage payment. 

3.  Decide if you want to pay additional points to lower your interest rate.
      Typically you can elect to pay additional points (each point is 1 percent of
     the mortgage loan payable in cash at closing) to lower the interest rate of
     your mortgage loan.
 

4.  Gather your paperwork. 
      Click here to view a list of typical loan documentation.