Step by Step Guide to Getting the Lowest Mortgage Rate and Closing Cos…

Everyone wishes for the lowest possible interest rate and the closing costs on their new mortgage, but most of them do not know what needs to be done to accomplish this goal. So here it is, a simple step by step guide you can follow to get the lowest interest rate and closing costs on your next mortgage financing.

Step 1: Educate yourself

Whether you’re refinancing your existing mortgage or getting a new mortgage on your new home buy, first thing you’ll want to do is educate yourself little bit about how mortgage loan course of action works. Not many have clear picture of the whole mortgage course of action, so people easily become frustrated and worried when they are not told about the current position and what to expect next. So before putting yourself into this situation, please research and educate yourself about the details of mortgage loan course of action when you get a chance.

Step 2: Shopping

You don’t have to flip by the old phone book to find some local mortgage companies around your neighborhood and contact them one by one. Instead, let lenders compete themselves with their best shots!

You can find some big companies in seconds by typing in the information “mortgage rates” into Google search engine. Few examples are,, and

These are online network of lenders where you can go to check out the real-time rates, and also compare the rates and costs offered by the several lenders. Try to fill in accurate information as possible for the best consequence when asked. Remember, you are under no obligation to accept a loan offer that is presented to you.

** Make sure to provide accurate information. If the rates and fees are quoted based on the information you provided but your information turns out to be inaccurate for some reason, your quoted rates and fees become invalid and will not be honored.

Step 3: Find a knowledgeable and experienced loan officer

Once you’re done comparing the rates & fees from 10+ different lenders online, you should be able to trim down to two or three after some research on their reviews and recommendations made by the real people. The rates and fees from these final lenders shouldn’t be much different at this point; instead you should focus on finding a knowledgeable and experienced loan officer. For about 10 minute-interview with them over the phone, you should be able to choose the one who makes you comfortable and sounds just right.

Step 4: Lock the rate

Now that you have found the most competitive and alluring mortgage rates and fees, you want to make it official by locking the rate. “Lock-In” method that the lender will keep up your rate for certain period of time to protect from rising in the future. You may also choose not to lock it or “Float” it if you feel that the rate will go down during the loan course of action. But if you choose the latter option, there’s no guarantee that you’ll get the rate you liked at the beginning. Always ask for the lock confirmation in document if you decided to lock-in and keep it for your record. Review the details carefully and let the loan officer know closest if you find any incorrect information.

** Lenders have their own lock policy and may not allow you to lock the rate without reviewing your loan application and credit package.

Please visit the ‘Consumer Financial Protection Bureau’ website for extensive information about rate locks.

Leave a Reply