The Top 5 Things You Must Know Before Applying for a
You've been thinking about buying your own home for quite a
long time, and now you're ready to take the plunge. You've been
saving money for a down payment, and you know the next step is
preparing to apply for a mortgage.
But where do you start?
Here are the top 5 things you need to know before approaching
a mortgage lender.
1. Understand Your Options
All mortgages are not created equal. There are several
different types, which vary based on interest rates and payment
? With a fixed-rate mortgage, your monthly payments remain the
same during the entire length of the mortgage. There will be no
variations in monthly payments, regardless of changes in interest
rates and inflation.
? With an adjustable-rate mortgage, you will often receive a
lower initial interest rate, but your monthly payment amount can
rise and fall as interest rates fluctuate (within certain caps or
? With a balloon or reset mortgage, you once again may be
offered a low interest rate, but it will hold for a limited time.
After that, the balance of the mortgage will be due, or you will
need to refinance.
2. Become a Rate Watcher
The state of the economy influences interest rates, which ebb
and flow on a regular basis.
Your daily newspaper tracks these rates, so stay current by
watching whether rates are rising, falling or remaining
It behooves you to become as educated as possible about how
these rates will affect your mortgage-and to see if you want to
postpone applying for one until rates drop.
3. Get Pre-Approved
Consider getting pre-approved for a mortgage, says Frank
Nothaft, PhD, vice president and chief economist for Freddie Mac,
the stockholder-owned corporation established by the United
States Congress in 1970 to create a continuous flow of funds to
mortgage lenders in support of homeownership and rental
"A benefit of being pre-approved for a mortgage loan is that
it gives the prospective homebuyer additional bargaining leverage
when competing with other prospective buyers for a home," he
says. "A home seller may be more likely to accept an offer from a
pre-approved borrower-because the seller knows the buyer can get
a loan-than from another bidder, who may be exactly the same in
financial qualifications and offer, except that he lacks the
4. Consider Making a Higher Down Payment
Making a higher down payment on a home will reduce your
mortgage, but there are definite pros and cons, according to Dr.
"The pro of putting down more money is that you can often
obtain lower-cost financing," he says. "High down-payment
loans-that is, low loan-to-value ratio-represent less default
risk to a lender, and are safer. That may translate into a lower
interest rate or obviate the need for mortgage loan
"The con," he continues, "is that it may result in the
borrower having to delay a home purchase, because the borrower
does not have enough liquid assets to make a larger down payment.
Low down-payment loans are especially important for first-time
home buyers, who typically do not have the financial wherewithal
to make a large down payment."
5. Select Your Lender Carefully
As in any industry, there are "bad apples" who ruin the
reputations of respectable professionals. In the mortgage
business, these folks are known as "predatory
lenders"-individuals who take advantage of vulnerable consumers.
Those most prone to becoming victims include the ill-informed,
the elderly, women, minorities, low-income buyers and consumers
with bad credit.
To avoid becoming "prey," select a lender with solid
credentials. You can secure a referral from your bank or credit
union, real estate agent, government housing agency, or friends
and relatives who have successfully purchased homes.
Never trust a mortgage offer that arrives via email, as it
likely originated from a spammer.
Mortgage Relief specializes in assisting Australian families
with mortgages by making their monthly repayments more manageable
and decreasing their overall debt and total interest paid over
the life of their mortgage. Mortgage Relief is a mortgage
refinance provider that it part of Australia's largest Debt
Relief? organization. Visit Mortgage Relief on the web at
or contact them directly on 1300 789 014.
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MORE RESOURCES updated Wed. February / 28 / 2024
Residential Mortgages -
a Step Ahead on the Property Ladder
Doesn't Residential mortgage give the impression that they
are a different breed of mortgages? They are often thought
at the first instance to be a complex term, which they
aren't. They are actually the regular mortgages that we
hear of so often.
Home Equity Increases $1
Trillion in Five Years - Is the Market Peaking?
A new survey reveals that in the last five years, the
equity in the California real estate market has increased
by more than one trillion dollars. A trillion dollars is a
large number to ponder, but put in concrete terms, it can
be represented by a stack of one hundred dollar bills that
is six hundred thirty one miles high! This astronomical
increase in California home values isn't all that unique,
13 Extra Costs to be
Aware of Before Buying a Home
Whether you're looking to buy your first home, or trading
up to a larger one, there are many costs - on top of the
purchase price - that you must figure into your calculation
of affordability. These extra fees, such as taxes and other
additional costs, could surprise you with an unwanted
financial nightmare on closing day if you're not informed
Apply For Home Mortgage
Loan Online With Bad Credit - Things To
So, you've found the perfect home. You've already decided
where to place each piece of your furniture inside the
home, and in your mind, all of your family photographs are
hanging alongside the stairwell.
The Mortgage Loan
Application Online - Save Time & Money By Applying On
"You can save time and money by applying for a mortgage
loan online." This often touted tagline seems like a
gimmick, but it's true.
Home Mortgage Loans For
People With Bad Credit - 3 Ways To Improve Your Chances For
Finding home mortgage loans are a reality for people with
bad credit. By tapping into online home loan resources, you
can find financing to buy a home.
Save Yourself from
Home buying Disasters
Whether you are a first time home buyer or a happy home
owner who wants to refinance an existing home loan, there
are some cardinal "dos" and "don'ts" to follow. For many,
home ownership is the biggest investment in their lives and
that could be the reason why some people act irrationally,
as if they purposely want to sabotage the deal.
Keep Your Eye Focused on
Treasury Bond Rates To Adjust Your Current Mortgage
Mortgage rates typically are based off the current rates of
treasury bonds. Most lenders set their long term mortgage
rates in line with 10 and 30-year treasury rates.
Jumbo Mortgage Loans -
Getting Approved for a Jumbo Mortgage Loan
Getting approved for a jumbo mortgage loan online is
similar to getting approved for a traditional mortgage when
you use a mortgage broker. However, you can expect to find
lower interest rates online with better terms.
Types of Financing for
When financing a home purchase, the kind of mortgage you
choose determines your monthly payment and the interest
rate you get on your loan. There are four main ways of
financing the mortgage for your home: 30-year fixed rate,
15-year fixed rate, adjustable rate, and interest only.
How To Save Thousands in
Interest on Your Home Mortgage!
So you have a mortgage on your home or planning to get one?
Here's something to consider if you want to reduce your
interest payment and save on thousands of dollars. Consider
going in for a bi-weekly mortgage payment plan.
Should You Get a Home
It's very important, and in my opinion, mandatory to have a
home inspection done before you close on a house. The
inspection helps with giving you an objective evaluation of
any problems with the home before you move in.
Home Mortgage Loan
Pre-Approval Online - Keys When Applying For A Mortgage
Applying online for a mortgage is very fast and easy. Just
make sure of a few things before you start to look for
places to apply to.
Money Smart Homeowners
Use this Mortgage Strategy Every Time
There are currently more than 50 million home mortgages in
the United States today. So why aren't more homeowners
taking advantage of the highest yielding lowest risk,
tax-free financial strategy available today? Let me ask you.
No Money Down Home
Are you in the market to purchase a home but are concerned
about not having enough money for the down payment? No down
payment home loans or 100% financing for your mortgage loan
used to be only advertised during late night infomercials
and in obscure real estate publications. The good news is
that if you want to buy a house but have little or no money
available for the down payment, there are mortgage lenders
who are offering no money down home loans in your area.
Home Equity Loans
A secured home loan differs from an unsecured loan in that
the secured loan borrows against one's home as collateral,
thereby reducing the risk to the lender. As such, secured
home loans often offer better interest rates than unsecured
loans, but offer higher risk to the borrower, as defaulting
on these loans can have greater consequences, such as
fines, or even possible repossession of the home originally
put up as the secured collateral (subject to the amount of
the loan, of course).
Home Loans: What You
Finding home loans can be a daunting task, whether you're a
first time home buyer or an existing homeowner. The good
news is that there are more options than ever to help you
find the loan that's right for you.
Multi Family Property
While most multi family properties are designed to allow
the peaceful coexistence of many families within their
separate units, some apartments and houses give you the
feeling that you're actually living in one big family.
Things like sharing one washer and dryer between five
families means you never know whose underwear you'll have
to fish out of the washer before you start your own
Measurement 101 -- Evaluate Your Own Ability to
We live in a society where people are losing their homes at
an alarmingly high rate. There are several reasons for
this, but one could certainly be avoided -- buying a house
that creates a loan that is too large for you to handle.
Bad Credit Mortgage
Lenders - Things You Should Know About Sub prime
Interest rates and fees vary between sub prime lenders just
like regular mortgage lenders. Just because you have bad
credit, that doesn't mean you should accept the first
financing offer from a sub prime lender.
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