Getting the best mortgage for a home purchase
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.
A mortgage isn't only a long term decision, it is also not an easy decision. There are complex factors to decide on. Things such as type of mortgage, interest rates, with or without balloon payments... these are all factors that come into play. Even seemingly small differences can end up saving you thousands of dollars or costing you thousands of dollars in unnecessary payments.
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.
Always check your credit report. Sometimes there is a mistake on there, and this can cost you a lot in added fees and interest rates. It's not too much of a hassle picking up your credit report in exchange for thousands and thousands of dollars in money saved. Do your research and make sure you make the right mortgage decision.
A mortgage isn't only a long term decision, it is also not an easy decision. There are complex factors to decide on. Things such as type of mortgage, interest rates, with or without balloon payments... these are all factors that come into play. Even seemingly small differences can end up saving you thousands of dollars or costing you thousands of dollars in unnecessary payments.
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.
Always check your credit report. Sometimes there is a mistake on there, and this can cost you a lot in added fees and interest rates. It's not too much of a hassle picking up your credit report in exchange for thousands and thousands of dollars in money saved. Do your research and make sure you make 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
12:21 PM
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