Monthly Archive: August 2013

Getting The Best From Your Home Mortgage

Did you ever have a mortgage? If you have, you are likely familiar with the stress and hardships that can come with not having a full understanding of what you’re getting into. Mortgage markets are constantly changing and you should make sure that you stay up to date. Continue reading this article and you can find the mortgage that meets your needs.

You have to have a lengthy work history to get a mortgage. Many lenders won’t even consider anyone who doesn’t have a work history that includes two years of solid employment. Having too many jobs in a short period of time may make you unable to get your mortgage. If you’re in the process of getting approved for a home loan, make sure you do quit your job during the process.

You will mostly likely need a down payment for a mortgage. In today’s world almost all mortgage providers will require down payments. Find out information on the down payment requirements in advance of submitting any loan application.

Why has your property gone down in value? Your home may look the same as the day you moved in, however other factors can impact the way your bank views your home’s value, and can even hurt your chances for approval.

Take a look at the past property tax payments on any house you are considering buying. Know what the property taxes are before you sign any papers. The local tax assessor might think your home is worth more than you think, making tax time unpleasant.

Consider making extra payments every now and then. Anything extra you throw in will shave down your principal. Making an extra payment often gets your mortgage paid off faster and saves you money on interest.

Get full disclosure, in writing, before signing for a refinanced mortgage. This usually includes closing costs as well as fees. Though most lenders are up front about their charges, others tend to disguise fees so that you do not notice.

A mortgage broker will look favorably on small balances extended over two or three credit cards, but they may look unfavorably at one card that is maxed out. If possible, keep all your balances under half of the limit on your credit. If it’s possible, shoot for below 30%.

Learn to identify a dishonest home mortgage lender, and how you can avoid them. Though many are legitimate, others are unscrupulous. Avoid the lenders who talk smoothly and promise you the world to make a deal. Also, never sign if the interest rates offered are much higher than published rates. Avoid lenders who say there is no problem if you have bad credit. Don’t go to lenders that say you can lie on the application.

You need to fully understand how much you will be spending on mortgage payments and other fees before entering a mortgage agreement. Look for itemized closing costs and other charges that included, as well as what the lender commission is. Many fees can be negotiated with the parties to your loan.

Mortgages have lots of fees associated with them, so educate yourself about all of them. Home loan closing documents are usually full of odd charges and expenses. It might seem overwhelming. You can learn the lingo with a little practice and go into mortgage negotiations better prepared.

Make sure that your savings are abundant prior to applying for your first mortgage. You need money for down payments, closing costs, inspections and many other things. Having a larger down payment may lead to a mortgage with better terms.

If your credit is not the best, save up a bigger down payment so that your package is more attractive. Three to five percent is common, but twenty will get you the very best deal.

Consider your personal comfort level when it comes to how much you want to spend on a home before talking to a mortgage company. If it should be that a lender gives you more money than you can pay back monthly, you’ll have some extra room. Do not overextend yourself no matter what. Such a situation can result in serious financial issues later on.

Never be dishonest with your lender. It is best to be honest about your income and your financial situation. Don’t under or over report assets and income. If you do this, you will burden yourself with more liability than you can handle. It might seem like a good idea, but it isn’t.

There is no need to reword your paperwork if you are denied by one lender – just take it to the next. Avoid making any changes. Many lenders are just more picky than others. The next lender may think you’re the ideal client.

The rates here are guidelines, not rules. Shop around at a competitor lender. If they offer a lower interest rate, take it back to the first one to see if they will match it. Often they will, saving you thousands over the life of the loan.

Be wary of any loan that comes with prepayment penalties. If you have decent credit, you don’t have to accept this type of loan. Being able to pay off the loan ahead of time can save you a lot of money on interest, so make sure to keep this in mind. It isn’t something you should overlook or a decision you should make lightly.

Don’t quit a job while closing a mortgage. Changing jobs means you will have to report new information to the lender, and this may delay the processing of your mortgage application. The lender might completely pull out of the deal.

Don’t have a lot of money that’s untraceable in your bank account. Large, unexplained deposits smacks of money laundering and will cause banks to shy away from you. If the funds are not traceable, your loan may be denied and you might find yourself on the wrong end of an investigation.

You need to know how to find the best mortgage available. If you don’t, you could make a mistake that affects you financially for many years to come. That can include losing your home. Instead, a company that will stand behind you is the most important thing.