How to Get a Home Mortgage in New York

Ready to get a home mortgage in New York? The process doesn’t have to be a big city ordeal. Following the steps below can save you time and money when you’re ready to get a New York home mortgage loan.

Instructions

Difficulty: Easy

1. Review a copy of your credit report. Correct any errors before applying for your loan.
2. Know that New York traditionally has the highest closing costs in the nation.
3. Explore various New York and federal home buyers programs offered to the disabled, senior citizens, veterans, low-income buyers, single parents, first-time buyers, senior citizens, and rural home buyers, such as the Farmworker Housing Program, the House NY Program, and the Housing Development Fund.
4. Go to these government sites for specific home assistance information:
   • New York Homeownership Overview
   • USDA New York Rural Development
   • New York Homeownership Assistance Programs
5. Search for a mortgage broker or lending institution such as bank, credit union, or online mortgage company. Ask a lot of questions, and get the type of mortgage that will fit your needs best.
6. Fill out the loan application with your selected lender, and bring all paperwork such as pay stubs, investment information, and tax returns. Pay careful attention to any fees that are mentioned.
7. Hire a respected real estate agent to help you find your new home.
8. Finalize the loan with your lender, and make an offer on the home.
9. Pay all closing, realtor and attorney fees. The lender will provide you with a schedule for repayment of the mortgage loan.

Tips & Warnings

• Take your time and find the lowest interest rates. Just one quarter of a percent can mean thousands of savings over a 30-year mortgage.
• Have your prospective home professionally inspected. Discover problems that may exist before the deal is finalized.
• Do not let a real estate agent pressure you to buy a specific home, as they may have another agenda.
• Before you sign anything, make sure that you thoroughly understand all the terms of the contract.
• No legitimate lenders will ask you to pay to apply for a loan.
• Record low interest rates of the recent past have led to an explosion of unethical lending and loan scams. Beware of lenders that intentionally coerce consumers into contractual loans with unusually high payment terms and interest rates, often directed at uninformed borrowers or those with poor credit. This is known as predatory lending. You may wish to have an attorney review any documents before you sign them.
• Make sure that the title of the home has no liens before you purchase it.