Floating a lien is a financial gamble that many people choose when buying a home. The basic idea is to hope that the market dictates a better interest rate for your mortgage between the time you sign the loan papers and the time you go to the closing. Depending upon current trends in the financial world, including certain government actions, you might end up with a much lower interest rate, or a much higher one. This difference could change the total price of your loan by thousands of dollars.
Materials You’ll Need
Search the Internet for a piece of property. Obtain information required by your bank’s loan officer from the owner of the property. Drive to the property to inspect it, and meet with the owner if possible.
Apply for a mortgage with your bank. Keep in touch with your loan officer via email. Be available during business hours via phone to answer any questions the loan officer might have. Provide the loan officer with all information as soon as possible.
Receive a mortgage and complete the paperwork required by the bank. Have an attorney review the paperwork to be sure you are getting the best deal possible. Refuse the option to lock in your mortgage interest rate.
Watch the interest rates rise and fall until the closing date. Arrive at your closing, and accept the industry standard interest rate for that day unless your loan officer offers you a lower rate.
Floating a lien is a risk. Rates rise and fall as dictated by the market and government controls. You might end up with a lower rate by following this plan, but you could end up paying a far higher price, depending upon these factors.
Moving: Mortgage Glossary [http://www.moving.com/articles/mortgage-glossary.asp]