By David Chapman
Here are some mortgage tips that can help you obtain a
with less hassle, and at a lower overall cost:
Determine how much home you can afford. Based on your income
and any long term debt, know the maximum payments you can be
certain of making comfortably. Home loans are serious
and buying too much home can build a mountain of debt. Make
you can make your payments comfortably; it shouldn’t be a
burden. Locate a mortgage calculator online that allows you to
enter your income and it will tell you how much mortgage you
Make a budget. Do you know where your money goes? How much is
spent on unnecessary things? How much are your utility bills?
If you are buying a larger home, the utilities will most
go up. Will you be able to make payments on time and pay the
larger bills? Does the home you are considering require
or upgrades? This tip recommends you figure these things into
budget to avoid overspending.
Gather documentation. You will be required to show quite a bit
of documentation before you mortgage is approved such as IRS
returns for past years, W-2’s, proof of current salary,
debts, records regarding child support or alimony and the
Become educated about mortgage types and rates. The tip is
important. If you know the meaning of the mortgage “lingo”,
types of loans available and what the current rates are, you
will be in a much better position to negotiate your home loan.
Start studying your options well before you plan to buy!
Consider a shorter loan term. The goal is to pay off the home
mortgage in the least time possible while allowing enough
to live comfortably. You can save tens of thousands of dollars
in interest payments!
Don’t forget you will have to pay closing costs. Many people
forget to include these costs into their plans and end up
coming up short. Find how much to expect from your broker or
real estate agent.
We hope these tips have helped you on the road to making your
mortgage experience easier and less costly. Learn all you can
before applying for a loan.
About The Author: The Mortgage Resource Center is a free
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