Choosing the correct mortgage is a big financial decision which impacts your life. It must be taken seriously. Making uneducated mistakes can be costly for you down the road. You can make a good decision if you are in the know.
You need to have a long term work history to be granted a home mortgage. Many lenders want a minimum of two years of regular employment before approving a loan. Multiple job changes can also cause disqualification. Make sure you don’t quit your job while you’re applying for your mortgage loan, too.
You probably need a down payment. Although there are some mortgages you can get without a down payment, for the most part you are required to have one. Ask what the down payment has to be before you send in your application.
You should have all your information available before you apply for a mortgage. Lenders need to see them before submitting your application. These include your W2s, pay stubs, income tax returns and bank statements. A fast, smooth process is in your future when you do this.
If your mortgage has a 30 year term, you should think about paying an extra payment each month. The extra amount will be put toward the principal amount. If you regularly make an additional payment, your loan will be paid off faster and it will reduce your interest.
Before you sign the dotted line on your refinanced mortgage, be sure to get full disclosure of all costs involved in writing. This usually includes closing costs as well as fees. Most companies are honest about the fees you will have to pay but it is always best to ask about fees before entering a contract.
Do not allow a single denial to get you off course. Just because a lender denies you does not mean that another one will. Continue trying to get a loan approval. Even if you need someone to help co-sign for you, you probably have options.
Talk to your friends for mortgage advice. Chances are you’ll be able to get some advice on what to look for when getting your mortgage. Some may share negative stories that can show you what not to do. You’ll learn more the more people you listen to.
What kind of mortgage is most beneficial to you? Learn about the various types of loans. There are different time frames, different payment schedules and different interest rates. You need to learn the pros and cons of each. Talk to your lender about your mortgage options.
If your credit union or bank will not approve a mortgage for you, a mortgage broker may be a good option. A mortgage broker may be able to locate a loan for your needs more easily than than the usual lenders. They are connected with multiple lenders and will be able to help you choose wisely.
Aim for a fixed rate mortgage rather than one with an adjustable rate. Such loans are vulnerable to shifting market conditions and often end up being quite costly. This may make it too hard for you to pay for your home, which is something you’re probably not wanting to have happen.
If you are able to pay a bit more each month, consider 15 and 20-year mortgages. These loans are shorter-term ones, and they have a higher monthly payment with an interest rate that’s usually lower. You could save thousands of dollars over a regular 30-year loan in the future.
Before you apply for a mortgage, make sure you have a substantial savings account. You’ll need the cash to pay closing costs, your down payment and miscellaneous fees. Obviously, the more you pay initially, the better deal you’ll get on a mortgage.
You should look up mortgage financing on the Internet. You don’t have to get a mortgage from a physical institution anymore. Many lenders with solid reputations just handle business online. The advantage to that is that things are processed in various locations, shortening the approval times.
Make sure your credit looks good in advance of trying to secure a mortgage. Lenders in today’s marketplace are looking for great credit. They like to be assured that their loans will be payed back. You should make sure you have good credit before applying.
Your credit crisis is not over just because your loan has been approved. Until the loan closes, you don’t want to take on any more credit. Lenders tend to check credit scores even following a loan approval. If they don’t like what they see, the loan can be cancelled.
If you have very little credit or no credit history at all, you will need to use alternative sources to qualify for a mortgage loan. Keep your receipts for a year. Borrowers who are just starting out can prove financial responsibility if they can document that they pay utility bills and rent on time.
Negotiate your interest rate with your lender by knowing the current interest rates offered by others. You will see that nontraditional financial institutions sometimes offer lower interest rates than do traditional banks. Use these as you pursue a better deal.
The best way to get a lower rate is by asking for it. If you do not muster up a bit of courage, you could end up paying on your mortgage for many more years. Lenders are often asked this question, so they are used to it. The worst thing they can do is say no, so don’t be afraid of rejection.
Use what you have just read to help you get a mortgage. There are tons of resources available and you don’t have to let your mortgage be a disappointment. Rather, use what you know and make an informed decision.
Tulsa Mortgage Club
10425 S 82nd East Avenue,
Tulsa, Oklahoma, 74104