Applying for your loan

When purchasing a home, applying for financing is very stressful for many people, but it doesn't have to be. Being connected with some lenders in the Newburgh area has helped me realize some things that make the process of applying for a loan effortless.

1 – Make a list of questions about your loan program

Make sure you have a list of questions if you don't completely understand the advantages and disadvantages of the different programs. I or one of my lender contacts can assist you with understanding the advantages and disadvantages of each program, because it can be a challenge to know the characteristics of fixed and adjustable rate mortgages.

2 – Decide when to lock

By locking in the interest rate, a mortgage lender is keeping to the mortgage interest rates for the loan – ordinarily at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the day you apply for your loan and closing. Buyers who opt to float presume interest rates will plunge in the near future. Click here to see the outlook for the next 90 days of interest rates.

3 – Decide if you want to pay additional points to decrease your rate

Oftentimes you can choose to pay additional points to lower the rate of your loan. Each point is 1 percent of the mortgage loan and is payable in cash at closing. To determine if you should buy points, click here to use our points calculator.

4 – Compile your paperwork

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