Since rate locks attach to a property and not an individual, you cannot lock an interest rate until you have a contract on the property.

Be careful with online lenders. While you may find a reputable one that offers a good deal, you are also likely to encounter more scams. [2] X Research source

Interest rate: the cost you pay to borrow the loan. The interest rate is a percentage of the loan. You pay this on top of the money you owe to repay the loan. Annual Percentage Rate (APR): how much you will pay every year year for the loan. This includes fees and interest. [4] X Trustworthy Source US Consumer Financial Protection Bureau U. S. government agency for protecting consumers in the financial sector Go to source Adjustable Rate Mortgage (ARM): a mortgage with interest rates that change over time. Rates may start low and then increase. This may be fine if you are planning to sell the house after a few years. Fixed Rate Mortgage: a mortgage with interest rates that do not change over time. This is ideal if you want to stay in the same house for the full length of the mortgage. Hybrid Adjustable Rate Mortgage: a mortgage that has fixed fees for the first year or two. After this point, the rates may change. [5] X Trustworthy Source Federal Trade Commission Website with up-to-date information for consumers from the Federal Trade Commisson Go to source

Say something along the lines of: “Right now, I am looking at houses in the $250,000 range, but I want to make sure that I qualify to borrow that much money first. ” Listen carefully to what they say. Ask questions about anything you are uncertain about or don’t know.

“How much will the down payment be? How much are closing costs?” “What is the APR? How much will I be paying every year, including fees, penalties, and interest?” “How long does it take to process a mortgage?” “Do you offer fixed-rate or adjustable rate mortgages?” “What will happen if I fall behind on my payments?” “Are there prepayment penalties?” In other words: “Will I be charged fees if I pay off my mortgage early?”[6] X Research source “What documents and information do I need to provide you?”[7] X Research source

Origination fees: these are the fees your lender will charge you for creating the loan. Discount points: these are the difference in yield between your chosen rate and the par rate. Closing costs: these are the fees you pay when the deed transfers to you. [8] X Research source Note that this is the only stage of the process where the lender can legally negotiate with you. If you are haggling over actual rates, which are set 60 days in advance, you may be dealing with someone unsavory.

You can say, “I have a few more meetings set up with other banks, but I will let you know as soon as possible what my decision is. ” If the lender tries to pressure you into signing a loan right away, resist. They are using predatory tactics to coerce you into getting a bad loan. [9] X Research source Simply state: “I do not feel comfortable signing onto a loan before I have explored my options. ” If the lender pushes you, stand your ground. Say: “I am not going to sign this loan yet. While I appreciate the deal, I do not like being pressured into a loan. ”

Blank spaces in documents. You should say: “I do not feel comfortable signing papers that have blank spots in them. Please fill in these spots, and resubmit the contract to me. ” Offering extremely low interest rates at the beginning and increasing them substantially after a certain point. This is known as ballooning. You should say: “I would rather pay slightly higher fees throughout the mortgage at a fixed rate. Can we negotiate this?” A statement in the contract that prohibits you from suing them in the future. Say: “I do not feel comfortable with this clause. I will not waive my right to sue. ” If the lender will not budge on these points, walk away. They are not a reputable lender. [10] X Research source