Are you going to finance your home?

When buying a home, applying for the loan is a stressful event for many people, but it doesn't have to be. I'm close to a lot of lenders in Newburgh, and they've helped me realize a few things that will make the process of applying for a loan a snap.

1 – Assemble a list of questions about your loan program

If you find that you do not fully realize the ins and outs of all the different loan programs, be sure to have a list of questions with you. Oftentimes, it can be hard to understand the differences between fixed and adjustable rate mortgages. I or one of my lenders can assist you with understanding the advantages and disadvantages of each one.

2 – Determine when to lock

Locking in an interest rate denotes that a mortgage lender commits to the interest rates for the loan – commonly at the time the loan application is received. By floating the rate, you can lock the rate at any time between the day of your loan application and closing. Those who decide to float think that interest rates will decline in the near future. Click here to see the outlook for the next 90 days of interest rates.

3 – Determine if you want to pay additional points to lower your interest rate

Typically you can choose to pay additional points to lower the interest rate of your loan. Every point is 1 percent of the loan and is payable in cash at closing. If you're undecided as to whether or not buying points is right for you, click here to use our points calculator.

4 – Compile your paperwork

Obtaining a loan requires lots of paperwork, so you should spend some time getting all your documents together. Click here for a list of common loan documentation.