Are you going to finance a home in Newburgh?

For most people, applying for mortgage financing can be one of the more troublesome elements of buying a home, but it doesn't have to be. I'm pretty close with a lot of mortgage lenders in Newburgh, and they've helped me learn some things that will make the process of applying for a loan easy.

1 – Create a list of questions regarding your loan program

Be sure to bring a list of questions if you find that you do not completely understand the advantages and disadvantages of the various loan programs. I or one of my lenders will be able to assist you with understanding the advantages and disadvantages of each one, because it is a challenge to understand the distinctions between both fixed and adjustable rate mortgages.

2 – Determine when to lock

By locking in a rate, the mortgage lender is holding to the mortgage interest rates for the loan – most often at the time the loan application is received. By floating the rate, you can lock the rate anytime between the day you apply for the loan and issuance of closing documents. Buyers who opt to float presume the 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

When you choose to pay additional points to lower the interest rate of your loan, you'll pay for them in cash at the time of closing. Each point is 1 percent of the loan. To determine if buying points is the best option for you, click here to use our points calculator.

4 – Compile your paperwork

Acquiring a mortgage loan requires a lot of paperwork, so you should spend some time getting your documents together. Click here to get a list of normal loan documentation.