As a first step, order a copy of your credit report and review it for errors. Remember that one-third of all credit reports are estimated to have inaccuracies. If you find mistakes, get them fixed. Then, before applying, call more than one lender and ask what type of loan is best for you. Once you know the loan type, how many points to pay and whether you need a lock-in, you can shop.
Many consumers are confused about the advantages of paying points.
Remember that points are an upfront lender fee with one point equal to one percent of the loan amount. All lenders and mortgage brokers offer lower rates if you pay more points. All lenders have zero point loans. The trick is to identify which rate and point combination saves the most money. But you won't know the exact number of points to pay unless you do some calculations.