Posted on: 27th Jun, 2005 11:58 pm
Thinking of getting a mortgage
While shopping for a home loan or a mortgage, you should look forward to make the best deal. A mortgage is like any other product available in the market. So if you compare the rates and negotiate tactfully with the lender you can surely come out with the best package. In your search for a better mortgage, we will guide you through the following steps so that you can proceed in the right direction.
Step-1: A rational bent of mind towards decision making
The key to success or failure in getting a mortgage lies in your ability to think rationally and then decide. You must approach in a professional manner. Consider your financial status, your needs and other circumstances. Only then you can decide for how long you want to keep the mortgage.
Step-2: Mortgage Pre-Approval
Before you proceed to accept the loan, clarify the following questions:
Step-3: Choosing the right lender
It is a crucial task to choose the right lender who can provide you with the mortgage of your choice. In reality there are different types of lenders in the market place and you need to choose the best of them. The best way to find a good lender is through personal reference from someone you know.
Step-4: Points and fees
You will have to pay higher points and fees, if your interest rate is low. So before getting involved in the mortgage process, it is better if you look for the loan points and other fees in the local newspaper. It will help you to get the best interest rate from the lender.
Step-5[: How much you can pay as the down payment
It depends how you replace the present consumption for future betterment. In general, the more you pay as down payment the less you have to pay as mortgage insurance. This is better for you as it will reduce your monthly payment.
Step-6: Planning for the loan term and interest rate
If you are planning to avail a short term loan, you should go for an adjustable rate mortgage. If you want the loan for a medium period then you should go for a step mortgage rate and for a long term you should go for a fixed rate loan. Thus the type of loan you avail depends on how long you want to keep the loan.
Step-7: Repayment procedure
Depending on your financial status, you should repay the loan in time. This will help you in saving extra dollars. In case you pay off the loan early, you will be charged a prepayment penalty and if you default in paying off any monthly payment then the lender may ask you to repay the entire debt at the earliest.
Step-8: Manage your Debt
If you continue with different kinds of loan and corresponding interest payment, then transfer all debts into a new loan if possible. But be aware of the profitability factor arising from the change in interest rate. This will prevent you from being overburdened with your debt.
Step-9: Availing a Home Owner's Insurance
After you have selected the loan amount with suitable interest rate and
points, you should avail a homeowner's insurance. You may have to shell out extra dollars for this purpose. Even then you should choose the best option.
Step-10: Handling Taxes
While you go for a mortgage, also check the tax benefit from availing the loan. It depends on the loan amount, interest rate, period of repayment and the points offered on the interest rate of the loan. So tax plays a major
role while you decide to choose a mortgage.
Getting the right mortgage is not an easy job. A quick glance at the steps mentioned above will help you in the cause. These steps will help to clear your doubts about the complexities involved in obtaining a mortgage.
While shopping for a home loan or a mortgage, you should look forward to make the best deal. A mortgage is like any other product available in the market. So if you compare the rates and negotiate tactfully with the lender you can surely come out with the best package. In your search for a better mortgage, we will guide you through the following steps so that you can proceed in the right direction.
Step-1: A rational bent of mind towards decision making
The key to success or failure in getting a mortgage lies in your ability to think rationally and then decide. You must approach in a professional manner. Consider your financial status, your needs and other circumstances. Only then you can decide for how long you want to keep the mortgage.
Step-2: Mortgage Pre-Approval
Before you proceed to accept the loan, clarify the following questions:
- Whether the lender will give you the best interest rate if you have an excellent credit rating.
- How does the pre-approval process work? What is its duration?
- Whether the lender may lock the interest rate in future.
- What will be the down payment including the total cost of the loan, monthly payment with PMI etc.?
- Whether the lender will provide a written commitment after approving the loan.
- Whether you posses the relevant documents asked for.
- The duration after which the lender will close the loan.
- If there is an acceptable appraisal for your loan then ask the lender how long it will take to approve the loan.
- You should look out for hidden costs, if any. This is done by checking for fees related to inspection, document preparation etc.
Step-3: Choosing the right lender
It is a crucial task to choose the right lender who can provide you with the mortgage of your choice. In reality there are different types of lenders in the market place and you need to choose the best of them. The best way to find a good lender is through personal reference from someone you know.
Step-4: Points and fees
You will have to pay higher points and fees, if your interest rate is low. So before getting involved in the mortgage process, it is better if you look for the loan points and other fees in the local newspaper. It will help you to get the best interest rate from the lender.
Step-5[: How much you can pay as the down payment
It depends how you replace the present consumption for future betterment. In general, the more you pay as down payment the less you have to pay as mortgage insurance. This is better for you as it will reduce your monthly payment.
Step-6: Planning for the loan term and interest rate
If you are planning to avail a short term loan, you should go for an adjustable rate mortgage. If you want the loan for a medium period then you should go for a step mortgage rate and for a long term you should go for a fixed rate loan. Thus the type of loan you avail depends on how long you want to keep the loan.
Step-7: Repayment procedure
Depending on your financial status, you should repay the loan in time. This will help you in saving extra dollars. In case you pay off the loan early, you will be charged a prepayment penalty and if you default in paying off any monthly payment then the lender may ask you to repay the entire debt at the earliest.
Step-8: Manage your Debt
If you continue with different kinds of loan and corresponding interest payment, then transfer all debts into a new loan if possible. But be aware of the profitability factor arising from the change in interest rate. This will prevent you from being overburdened with your debt.
Step-9: Availing a Home Owner's Insurance
After you have selected the loan amount with suitable interest rate and
points, you should avail a homeowner's insurance. You may have to shell out extra dollars for this purpose. Even then you should choose the best option.
Step-10: Handling Taxes
While you go for a mortgage, also check the tax benefit from availing the loan. It depends on the loan amount, interest rate, period of repayment and the points offered on the interest rate of the loan. So tax plays a major
role while you decide to choose a mortgage.
Getting the right mortgage is not an easy job. A quick glance at the steps mentioned above will help you in the cause. These steps will help to clear your doubts about the complexities involved in obtaining a mortgage.
Post deleted...
wow...that was ancient...you were lacking entertainment i guess, eric.
SAVE SOME MONEY FOR THE FUTURE! Life is very hard to live!
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PLEASE VISIT THIS SITE:
http://www.mortgagereviewsite.com/
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PLEASE VISIT THIS SITE:
http://www.mortgagereviewsite.com/
Nowadays, its true that it's hard to find the best deals yet there are options like consulting an expert to help us find the best loan that will fit us. Your post is really informative and well-researched i guess and thank you for sharing that knowledge.
mortgage refinancing is replacement of an existing mortgage with a new loan under different terms.
refinancing is not recommended for everyone. it is important that you weigh all your options when considering whether or not to refinance.
refinancing your mortgage will lessen your monthly bill such as student loans, school fees, credit card debts etc and give you more financial freedom.
i recommend you carfinance.org. it makes it easy to compare home purchase rates, get multiple quotes, compare offers from around a 100 companies and choose the loan that is right for you at no cost and no obligation.
so refinance now and save at carfinance.org
refinancing is not recommended for everyone. it is important that you weigh all your options when considering whether or not to refinance.
refinancing your mortgage will lessen your monthly bill such as student loans, school fees, credit card debts etc and give you more financial freedom.
i recommend you carfinance.org. it makes it easy to compare home purchase rates, get multiple quotes, compare offers from around a 100 companies and choose the loan that is right for you at no cost and no obligation.
so refinance now and save at carfinance.org
Before buying a home, it is important that evaluate your job stability and financial status and how big of a mortgage you can really afford to pay back. Bear in mind that a mortgage is a long-term, substantial amount of debt that can take a big share out of your monthly income. If your mortgage payments are going up faster than your income, you're just going to rack up a bigger debt or even lose the property in the event of default or foreclosure.
Thanks for sharing your opinion, gethomeloanz!! :)
This seems really interesting and useful information about mortgage loan on real estate property. I really appreciate you for sharing such a require information in this thread.
These are some very helping advisory steps properly stated here. It will certainly boost people confidence while taking a loan or otherwise give them prior knowledge before contacting any agency to get assistance in getting a good loan scheme.
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