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Home Loan Checklist

Click here to view the Loan Application Checklist.

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.

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.

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.

What is your mortgage broker making?
Don't be afraid to ask your mortgage broker what he/she is making on the loan. A mortgage broker makes a "front end" return in the form of loan application and loan processing fees. A mortgage broker makes a "back end" return from the lender, who pays a wholesale fee for the loan. Negotiate with the mortgage broker---you are directly or indirectly paying these amounts!

Two Track - Apply For A Loan At More Than One Place
Apply to more than one mortgage broker or lender--particularly if there is no loan application fee. Quite often you can "two-track" and have two applications going at once--at least up until appraisal.

Let mortgage brokers and lenders compete for your business--it will mean better rates and terms for you.

Document All Conversations and Actions
Document every conversation. Document everything you send to the mortgage broker or lender. That way, if there is ever any miscommunication between the mortgage broker, the lender and you, you have the evidence to support your words and actions. You are the ultimate loser if your financing falls through---so be careful to document your dealings with both mortgage brokers and lenders.