Getting The Best Mortgage When Buying A House
You've made the decision to buy a house and get a place of your own. With this decision usually comes the financial obligation of a mortgage. Buying a house is not only a big life decision, it is also a big financial decision. Because of the fact that your new mortgage will take a while to pay off, it makes sense to take the trouble of finding out a little about mortgages in order to make the best mortgage decision.
Not only is it a long term decision, you will have some complex factors to decide on. Interest rate, with or without balloon payments, type of mortgage... And even a small difference in interest for example can mean huge savings or costs along the way.
Always seek expert advice before you decide on a mortgage. A lender handles mortgages all day every day. A regular consumer handles mortgages once in a couple of years. Lenders have studied mortgages and can advice you on how to get the best rates and which kind of mortgage suits your situation. it is important to choose the right person, because the right advisor can look out for you and make sure you don't make the mistake of taking on a loan that you can not afford.
If you apply for a mortgage, the mortgage provider looks at roughly three things. They want to know what your income is, compared to the debt. What you propose as a down payment (the bigger the better) and what your current credit rating is. Information about all three factors is readily available online and offline. If your credit score is too low, it can be improved significantly with the right knowledge. And if the down payment is a problem, every day there are more possibilities to buy with little or no money down.
Another tip is to always, always, always check your credit rapport when applying for a mortgage. Sometimes you find a mistake on your credit report. If you don't notice it and correct it when you see it, such a little flaw can end up costing you thousands of dollars that you could have saved in interest and added fees. Just take the time to get your credit report. When you find a mistake, the time taken to do the research is a very small price to pay in exchange for the money saved. Be prepared and take the time to research mortgages. This way, you can be sure you are making the right mortgage decision.
Not only is it a long term decision, you will have some complex factors to decide on. Interest rate, with or without balloon payments, type of mortgage... And even a small difference in interest for example can mean huge savings or costs along the way.
Always seek expert advice before you decide on a mortgage. A lender handles mortgages all day every day. A regular consumer handles mortgages once in a couple of years. Lenders have studied mortgages and can advice you on how to get the best rates and which kind of mortgage suits your situation. it is important to choose the right person, because the right advisor can look out for you and make sure you don't make the mistake of taking on a loan that you can not afford.
If you apply for a mortgage, the mortgage provider looks at roughly three things. They want to know what your income is, compared to the debt. What you propose as a down payment (the bigger the better) and what your current credit rating is. Information about all three factors is readily available online and offline. If your credit score is too low, it can be improved significantly with the right knowledge. And if the down payment is a problem, every day there are more possibilities to buy with little or no money down.
Another tip is to always, always, always check your credit rapport when applying for a mortgage. Sometimes you find a mistake on your credit report. If you don't notice it and correct it when you see it, such a little flaw can end up costing you thousands of dollars that you could have saved in interest and added fees. Just take the time to get your credit report. When you find a mistake, the time taken to do the research is a very small price to pay in exchange for the money saved. Be prepared and take the time to research mortgages. This way, you can be sure you are making the right mortgage decision.
About the Author:
Peter writes articles about mortgages in English. He writes articles about hypotheek oversluiten and hypotheek in Dutch.
posted by Credit Counseling at
6:21 AM
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