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. Check out your lender, ask questions. How many loans are they servicing that are bank originated, how many from private lenders?  Make sure the tight credit market hasn't restricted your lenders availability of funds.

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 anytime between the loan application day and closing. Buyers opt to "float the loan" when they believe interest rates will drop after their loan application date and prior to closing. The risk is that rather than dropping, interest rates may rise, increasing the mortgage payment.

1. 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.

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