Let Countryman Real Estate Associates help you with financing a new home.

When purchasing a home, applying for a mortgage loan is a troublesome event for most people, but it doesn't have to be. I'm pretty close with various lenders in Newburgh, and they've helped me understand some things that can make the process of applying for a loan very easy.

1 – Make a list of questions about your loan program

Make sure you have a list of questions with you if you find that you do not totally understand the pros and cons of the different loan programs. I or one of my lender contacts will assist you in understanding the advantages and disadvantages of both programs, because it's hard to understand the characteristics of both fixed and adjustable rate mortgages.

2 – Decide when you want to lock

Locking in means that the lender commits to the interest rates for the loan – normally at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the day of your loan application and the issuing of closing documents. Buyers who elect to float think interest rates will plunge 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 rate

If you choose to pay additional points to lower the rate of your loan, you will do so by paying for them in cash at the time of closing. Each point is 1 percent of the mortgage loan. If you're unsure if buying points is right for you, click here to use our points calculator.

4 – Compile your paperwork

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