Looking to finance a new home?

Applying for a loan can be one of the most distressing aspects of purchasing a home for a buyer, but it doesn't have to be. I'm well-connected to a lot of mortgage lenders in the Newburgh area, and they've helped me realize some things that can make the process of applying for a loan very easy.

1 – Create a list of questions regarding your loan program

If you find that you don't fully realize the pros and cons of the different programs, be sure you have a list of questions with you. Oftentimes, it can be hard to know the differences between fixed and adjustable rate mortgages. I or one of my lender contacts can assist you with understanding the advantages and disadvantages of both.

2 – Decide when to lock

By locking in the rate, your lender is holding to the interest rates for the loan – generally at the time the loan application is received. By floating the rate, you can lock the rate anytime between the day you apply for your loan and issuance of closing documents. Buyers who choose to float conclude that 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 reduce your interest rate

Generally you can elect to pay additional points to lower the interest rate of your mortgage loan. Every point is 1 percent of the loan and is payable in cash at closing. Click here to use our points calculator. This tool will help you decide if purchasing points is the best option for you.

4 – Compile your paperwork

Obtaining a loan requires lots of paperwork, so you should take some time to get all your documents together. Click here to get a list of common loan documentation.