What To Consider When Taking Out A Mortgage Loan Syracuse NY

Taking out a mortgage is a major milestone in any adult’s life. You’re finally ready to step up and commit to owning a home. However, it can be a tricky and complicated process due to the legalities and financial documents you have to comply with.

You also have to take the time to research on the lender and their borrower requirements. Websites like www.empowerfcu.com make the process straightforward by allowing you to check the program that’s best suited for your needs and apply for it online.

Whether it’s your first time to purchase a home or you’ve already gone through the process before, here are the crucial things to consider when taking out a mortgage loan in Syracuse, NY:

1. Know Your Budget and Credit Score

First, you have to go through the nitty-gritty of your finances and figure out the amount that you are capable of spending. Living in your dream home may not be worth it if you’re unable to eat well or maintain its upkeep.

Next, you have to check your credit reports, especially your credit score. This figure has a significant impact on the likelihood of your mortgage application’s approval, the amount that the lender will allow you to borrow, and the length of your contract.

Here are some tips to manage your credit during the loan process:

Maintain Your Finances – Your finances should remain the same from the start of your application to the closing. This way, the process won’t get delayed. You can do this by not opening or terminating your credit card accounts during this period.

Pay Your Balance Early – One tactic to prevent home loan rejection is to repay your debt on-time or early. With this, you reduce the balance recorded on your monthly statement, which is used by financial institutions to calculate your debt-to-income ratio.

Check Your Accounts – While your corporate credit card is paid by your employer, it’s still linked to your personal credit score. Be mindful of overspending, as this will affect your standing. The same goes for credit accounts you share with your parents, kids, or significant other.

Build Your Credit Score – In NYC, people with a minimum credit score of 700 can have their mortgage application approved with ease. If you plan to purchase a home soon, you should work toward improving your score by paying your debt on-time and decreasing your outstanding balances.

2. Determine Your Preferred Mortgage Term

Knowing your budget means deciding how much down payment you can come up with, as well as the amount you can set aside each month to repay your mortgage loan. You also have to identify your capability to commit to this expense for a set number of years.

The typical mortgage period encompasses 30 years. However, you have the option to shorten it to 20 or even 15 years. Not only can you officially own your home quicker, but you’ll also save on interest. The monthly repayment is higher, though.

3. Choose Between Co-ops and Condos

A majority of residences in New York fall into the co-ops and condos category. The property type that you select can impact the likelihood of your mortgage application’s approval.

Co-ops, or cooperative buildings, are owned by its residents who form a corporation. When you opt for this setup, you become a shareholder of the property, not the sole proprietor. This arrangement also has a stricter vetting process and may limit the amount you can finance through a loan for a percentage of the price.

It’s generally more straightforward to purchase a condo through a mortgage. Condominiums are a traditional property type, where you own the space, but you also have to pay real estate taxes for it.

4. Be Mindful of Form 4506

You fill up Form 4506 from the IRS to request a copy of your tax return. With this, you designate a third-party, usually the mortgage broker or bank, to obtain the information necessary for your application.

Lenders use this copy to verify your tax returns and ensure that your income matches the data that you gave to them. Remember to fill up this form with precisely the same personal details as they appear on your tax return to avoid processing delays.


Taking out a mortgage loan can be an overwhelming process with all the legal and financial terms you read. Remember to determine your budget and work on improving your credit score first before you send your home loan application.

Next, you ought to identify how long you can commit to paying the monthly repayment. Lastly, be careful in filling up Form 4506 since inaccuracies can lead to processing delays.

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