It’s a new year 2015 – started with lots & lots of fun, expectations and promise to fulfill in the coming days. As a home buyer, you can expect many changes in real estate market as well as mortgage industry. To be in a safe side, you must be aware off the little options of financing your home. If you know the tricks & tips on how to get finance in 2015, it will be easier for you to get a suitable mortgage loan & to avail a perfect home.
So, here goes some important advice for you, wrapped with some warning :
TIP 1: Make a plan before you begin shopping & move forward to convince a lender for reviewing your mortgage profile. Shopping for your dream home is great when you have found several exciting options. In that situation there’s nothing more important for you to rush & shop for best! But, you must remember - you'll need a comprehensive review by a lender about your mortgage profile. Without the review your mortgage request would not be properly structured. As you are requesting for funds, proper structured request is essential for a successful transaction. Working with a trusted lender is very much required for the deal as the lender himself should be capable to perform the job.
TIP 2: If you have enough assets gathered for paying down different initial costs like – reserve, down-payment and closing costs, it will be dangerous. If as a buyer you are sourcing your assets while using a 401k, different funds & more like these..you are actually playing a tricky part which later might get worse.
TIP 3: Check whether you are qualifying for the mortgage loan or not. In these days rules & guidelines become variable & they change according to current structure and strategy. As an example , if you are refinancing 3 properties on a row, & you are intended to finance another fresh property by your name, there will be much more documentation & clarifications needed to ascertain whether you are eligible or not.
TIP 4: 2015 real estate trend is to go green save energy! Since past five years the cost of energy is increased nearly 40%. So, it is time to learn & adopt the future technologies. For making a energy efficient home or to upgrade an existing home to a energy saver house, energy efficient mortgages are also available. Consult an energy efficient mortgage planner & gather knowledge more about the process & details of building a energy saver home.
TIP 5: Being a wise buyer, it is your duty to watch over the current market rates. You may take advice from the lender, but professional lenders even sometimes failed to predict the future rates. Do not be so keen to pull the trigger at the climax, be prepared for the continuous changing economic situations.
TIP 6: You must plan your strategies & review your equity status, ask yourself few important questions to judge you financial stability :
The interest rate which you will be paying, can it hurt your flow of liquid cash? More specifically, are you paying much more interest than you should be paying? A lower rate of interest will surely save more cash in every month. You can save that extra money for future use or can invest it to reduce your overall loan amount, so that your monthly interest will also be reduced in the long run.
If you are opting arm, review your term by time to time. Make sure whether you are having an adjustable rate nearing term or not. Know well the details of adjustment of the interest rate. Take the opportunity of working with a professional lender. It will help you to understand the loan process & related terms & conditions. In future, incase you are opting another mortgage, few of the step you might do by yourself for sure.
Be prepared using the above mentioned advices and communicate with a skilled lender so that you can be ready to grab the opportunity when the situation calls.