Thinking of financing a home?

When purchasing a home, applying for a loan is a demanding event for many people, but it doesn't have to be. I have a close business relationship with several lenders in Newburgh, and they've helped me learn some things that can make the process of applying for a loan easy.

1 – Assemble a list of questions regarding your loan program

Make sure to have a list of questions if you find that you do not thoroughly comprehend the advantages and disadvantages of all the various programs. I or one of my lender contacts can help you understand the advantages and disadvantages of each program, because it can be a challenge to understand the characteristics of both fixed and adjustable rate mortgages.

2 – Determine when you want to lock

When you lock in the rate, a mortgage lender is sure to commit to the mortgage interest rates for the loan – most often at the time the loan application is sent in. By floating the rate, you can lock the rate at any time between the day of your loan application and closing. Buyers who prefer to float conclude that the 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

If you decide to pay additional points to lower the interest rate of your mortgage loan, you'll pay for them in cash at closing. Each point is 1 percent of the mortgage loan. Click here to use our points calculator. This tool will assist you with determining if purchasing points is right for you.

4 – Gather your paperwork

Acquiring a loan requires a lot of paperwork, so you should spend some time getting your documents together. Click here for a list of general loan documentation.