1 – Make a list of questions regarding your loan program Make sure to have a list of questions with you if you do not totally comprehend the pros and cons of all the various programs. I or one of my trusted lenders will assist you in understanding the advantages and disadvantages of each one, because it's a challenge to understand the differences between both fixed and adjustable rate mortgages. 2 – Determine when you want to lock By locking in the interest rate, the lender is holding to the mortgage interest rates for the loan – commonly at the time the loan application is sent in. By floating the rate, you can lock the rate anytime between the day you apply for the loan and at the time of closing. Those who prefer to float presume that the interest rates will drop 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 rate When you decide to pay additional points to lower the rate of your loan, you'll pay for them in cash at the time of closing. Every point is 1 percent of the mortgage loan. Click here to use our points calculator. It will help you decide if purchasing points is the best option for you. 4 – Gather your paperwork Obtaining a loan requires a lot of paperwork, so you should spend some time getting your documentation together. Click here to get a feel for normal information that goes on a loan application.