Applying for a loan in Newburgh
When buying a home, applying for a loan is a very stressful event for most people, but it doesn't have to be.
I have a close relationship with several lenders in Newburgh, and they've helped me recognize a few things that will make the process of applying for a loan pretty simple.
1 – Compile a list of questions regarding your loan program
Make sure you have a list of questions if you do not thoroughly understand the advantages and disadvantages of the different loan programs.
I or one of my lenders will assist you in 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 – Determine when to lock
Locking in means that the lender holds to the interest rates for the loan – commonly at the time the loan application is sent in.
By floating the rate, you can lock the rate at any time between application and closing. Buyers who prefer to float believe 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 interest rate
If you elect to pay additional points to lower the rate of your loan, you'll do so by paying for them in cash at the time of closing. Each point is 1 percent of the loan.
Click here to use our points calculator. This tool will help you determine if buying points is the best option for you.
4 – Bring your paperwork
Obtaining a loan requires lots of paperwork, so you should take some time to get all your documents together. Click here for a list of common loan documentation.