Consider getting either a contingent letter of approval for a loan or an actual approval loan commitment prior to making an offer. While the lender must still verify the information you provided, the contingent letter nevertheless can impress a seller, who might be more willing to accept a lower offer because they are more confident you'll get the loan. This will give you time to select a home and protect you from subsequent rate increases. Advance approval will substantially increase your negotiating leverage. It will also add pressure to make your selection quickly.
Some plans have rate or payment caps.
Lower monthly payments rise gradually, then level off for duration of term. With adjustable interest rate, additional payment changes possible if index changes. Your choice of lender will influence not only your settlement costs, but also the monthly costs of your mortgage loan. Lending institutions may require certain settlement services, such as a new survey or title insurance and they may charge you for other settlement-related services, such as the appraisal or credit report. You may find, in shopping for a lender, that other institutions may not have such requirements.