How To Choose A Mortgage
So you have decided to buy a house and find a home mortgage to suit you.
Does that fill you with joy or apprehension? Well if it is the latter it is probably the thought of borrowing all that money that is of most concern.
Getting a home mortgage To Suit You, can, at first glance seem daunting but if you prepare in advance it can be a relatively painless process.
So, how to choose a mortgage.
Here goes with 3 tips to ease the way: 1.
Pay up your credit card and other debt..
..
..
...
Yea right! how long is that going to take? ..
Well of course it may take a while but if we are in the early stages of planning that is ok.
Otherwise try and consolidate the debt into just one card and begin paying more than just the monthly minimum.
Some credit card companies will give a lower initial interest rate to transfer debt to them; check around.
If you simply can not wait, get mum and dad to pay up your cards and repay them later when you have your new mortgage ( having allowed for that extra amount in the loan total).
You will of course pay much lower interest rates on a mortgage than on a credit card so you can afford to pay it off quicker.
The idea here is to impress the mortgage manager of your fiscal resolve.
You are going to be one great customer who always pays on time.
2.
Get prior approval..
...
Well why bother you might say "let me find the home first".
But hold on.
Are you sure you know how much you can spend? How much you can afford to repay each month? There is nothing more disappointing than finding the perfect home that you simply can not afford, because nothing will measure up after that!...
Getting Prior approval will answer these questions and you will have any problems that might crop up sorted out.
Best of all your realtor will love you because you are in a better position to put in a strong offer.
Not only that but you will probably buy at a much better price because your offer looks a whole lot more attractive.
OK that is number 2.
Go to your selected lender and get this process completed.
3.
Do not Overburden Yourself..
..
..
Ok you have got your prior approval, you know your maximum spend is lets say $200,000.
So look at houses between $175,000 - $195,000.
Hopefully you can buy $10,000 - $20,000 below budget.
Great, because now you have freedom to pay for the unexpected.
Closing costs, extra things to buy for the house and garden etc.
If you are lucky you might now be able to fit in extra lump sum payments to pay off the loan quicker.
By doing that, you could save yourself thousands of dollars in interest payments.
Imagine a 20 year mortgage paid off in say 15 years, wow, how many thousands would that save you.
Ask your mortgage lender to show you how to choose a mortgage best suited to your needs and future aspirations.
So go to it...
slam the door on wasted rent money and open the way to a sound financial foundation.
Does that fill you with joy or apprehension? Well if it is the latter it is probably the thought of borrowing all that money that is of most concern.
Getting a home mortgage To Suit You, can, at first glance seem daunting but if you prepare in advance it can be a relatively painless process.
So, how to choose a mortgage.
Here goes with 3 tips to ease the way: 1.
Pay up your credit card and other debt..
..
..
...
Yea right! how long is that going to take? ..
Well of course it may take a while but if we are in the early stages of planning that is ok.
Otherwise try and consolidate the debt into just one card and begin paying more than just the monthly minimum.
Some credit card companies will give a lower initial interest rate to transfer debt to them; check around.
If you simply can not wait, get mum and dad to pay up your cards and repay them later when you have your new mortgage ( having allowed for that extra amount in the loan total).
You will of course pay much lower interest rates on a mortgage than on a credit card so you can afford to pay it off quicker.
The idea here is to impress the mortgage manager of your fiscal resolve.
You are going to be one great customer who always pays on time.
2.
Get prior approval..
...
Well why bother you might say "let me find the home first".
But hold on.
Are you sure you know how much you can spend? How much you can afford to repay each month? There is nothing more disappointing than finding the perfect home that you simply can not afford, because nothing will measure up after that!...
Getting Prior approval will answer these questions and you will have any problems that might crop up sorted out.
Best of all your realtor will love you because you are in a better position to put in a strong offer.
Not only that but you will probably buy at a much better price because your offer looks a whole lot more attractive.
OK that is number 2.
Go to your selected lender and get this process completed.
3.
Do not Overburden Yourself..
..
..
Ok you have got your prior approval, you know your maximum spend is lets say $200,000.
So look at houses between $175,000 - $195,000.
Hopefully you can buy $10,000 - $20,000 below budget.
Great, because now you have freedom to pay for the unexpected.
Closing costs, extra things to buy for the house and garden etc.
If you are lucky you might now be able to fit in extra lump sum payments to pay off the loan quicker.
By doing that, you could save yourself thousands of dollars in interest payments.
Imagine a 20 year mortgage paid off in say 15 years, wow, how many thousands would that save you.
Ask your mortgage lender to show you how to choose a mortgage best suited to your needs and future aspirations.
So go to it...
slam the door on wasted rent money and open the way to a sound financial foundation.
Source...