Things You Must Know Before You Buy
you are about to buy your first home, or are planning to make a move
to your next home, it is critical that you inform yourself about the
factors involved in making good finance decisions.
research has shown that there are 5 common mistakes that most home
buyers make in mortgage shopping that can cost or save them
substantial amouts of money during the life of the loan...
1. You can,
and should get pre-approved for a mortgage
before you go looking for
Pre-approval is easy,
and can give you peace-of-mind when shopping for your home.
Your mortgage lender can provide you with a written pre-approval at
no cost, and most of the work can be done quite easily right over
the phone. Meaning much more than a verbal approval, a written
pre-approval gives you credibility when dealing with a seller who
may be suspicious of buyer qualifications.
2. Know what
monthly payment you feel comfortable with.
When you discuss mortgage
pre-approval with your mortgage lender, find out what amount you
qualify for, but also consider what monthly payment you feel
comfortable paying each month. By considering both of these
numbers, you will be able to assess what price you should be
searching in, and avoid looking at homes that are out of your price
about the future to determine the best direction
to take now.
There are many questions you should
ask yourself before you commit to a certain loan program. How
long do you intend living at the home you are purchasing? In
what direction are interest rates headed, and how fast? Is
your income expected to go up or down in the near future? The
answers to these questions will assist you in determining the best
program for your needs.
sure you understand pre-payment priviledges or
Many loans allow you the ability to
pay off all or part of the principal at any time without tacking on
a penalty fee. Make sure you ask your lender if there is a
pre-payment penalty(which is common), and if so, how long do you
have to pay on the mortgage to avoid the penalty. Many loans
have a 1 or 2 year term, after which you may pay off the loan
sure you're dealing with a mortgage expert.
Make sure you're dealing with a
mortgage expert during the largest purchase of you life. Ask
your lender how long they've been working in the finance industry.
Make sure they're involved fulltime and work solely on mortgage
loans. There are some Realtor/Mortgage Broker types who claim
they can assist you with everything. Be Vary Cautious -
Remember, "Jack of all trades... Master of none". Utilize the
services of a Realtor to list or buy. Utilize a mortgage
lender for the financing.
Need to speak with a mortgage professional in your area?
Need to speak with a Realtor in your