Getting a hassle-free home mortgage loan can be easier than you ever imagined. All it takes is a little preparation and legwork on your end to prepare the lender to say yes to your loan so that you can turn the key on your new home sooner!
The decision to purchase your own home is one of the biggest ones you will make in your financial life. Homeownership can be very rewarding - and is much more appealing than throwing your money down the drain to rent from stuffy landlords. But before applying for the most important loan of your life, you should make some preparations to ensure the process goes as smoothly as possible - and in your favor, of course.
Know If Your Credit Report Is Error Free
About six months before deciding to purchase a home, you should pull your own credit report. If you are married, your spouse should pull their credit report as well. Up to eighty percent of all credit reports are filled with erroneous information. By checking your credit report, you can eliminate the what-if factor of having mistakes on your report that could either cost you the approval of your home mortgage loan, or make your loan cost more in the way of interest rates.
You can obtain, by law, one free copy of your credit report each year from all three major credit reporting bureaus. Should you check all three? Yes! Each agency that holds your report has different ways of reporting information, so there could be errors on all three. Besides, all lenders do not use the same agency to obtain credit reports on potential borrowers. Be certain to note any discrepancies right away to the agency holding your report so that errors can be corrected in time for you to apply for your home mortgage loan.
Know How Much Money You Can Afford To Spend
Although your dream house might sit on a tropical beach somewhere, you may not be able to afford such luxury. Know in advance how much you can reasonably afford to spend on a home before you apply for your home mortgage loan. By making up a simple budget, you should be able to roughly estimate the amount of income that you can designate to make a home mortgage payment. With some lenders, you can become prequalified for a home mortgage, but they will want to know how much you can afford to spend. In general, you should plan to spend no more than thirty percent of your total income before taxes on housing - so this can be a jumping off point for you to figure your home buying budget.
Know The Rates And Terms Of Common Mortgages
Familiarize yourself with common rates and terms of mortgages, and know which you would prefer to have. Ask yourself a few questions. How many years do I want to spend paying off my home? Do I want a fixed rate or an adjustable rate mortgage loan? Do I want to or can I afford to make a down payment? Will my lender add homeowner insurance to my loan, or do I want to get coverage independently? It is important that you understand the complexities of home mortgages before entering into yours.
Know Where To Save Money On Your Mortgage Loan
Saving money is very important when you are looking at buying a new home. You can save tons of cash by using an online lender for your home mortgage loan, not just in reduced costs and fees, but also in interest. Online lenders usually offer reduced interest on home mortgage loans because of the huge amount of competition between lenders. An interest rate reduction of just one-half point can save you thousands of dollars over the life of your mortgage loan.
Mary Wise is a personal loan consultant who has been associated with Bad Credit Loans and has more than thirty years of experience in finances. She has helped a lot of people to obtain Fast Unsecured Loans, home loans, car loans, unsecured credit cards and many other products regardless of their credit situation. If you want to learn more about Personal Loans you can visit her at http://www.badcreditloanservices.com/
Article Source: http://EzineArticles.com/?expert=Mary_Wise
The decision to purchase your own home is one of the biggest ones you will make in your financial life. Homeownership can be very rewarding - and is much more appealing than throwing your money down the drain to rent from stuffy landlords. But before applying for the most important loan of your life, you should make some preparations to ensure the process goes as smoothly as possible - and in your favor, of course.
Know If Your Credit Report Is Error Free
About six months before deciding to purchase a home, you should pull your own credit report. If you are married, your spouse should pull their credit report as well. Up to eighty percent of all credit reports are filled with erroneous information. By checking your credit report, you can eliminate the what-if factor of having mistakes on your report that could either cost you the approval of your home mortgage loan, or make your loan cost more in the way of interest rates.
You can obtain, by law, one free copy of your credit report each year from all three major credit reporting bureaus. Should you check all three? Yes! Each agency that holds your report has different ways of reporting information, so there could be errors on all three. Besides, all lenders do not use the same agency to obtain credit reports on potential borrowers. Be certain to note any discrepancies right away to the agency holding your report so that errors can be corrected in time for you to apply for your home mortgage loan.
Know How Much Money You Can Afford To Spend
Although your dream house might sit on a tropical beach somewhere, you may not be able to afford such luxury. Know in advance how much you can reasonably afford to spend on a home before you apply for your home mortgage loan. By making up a simple budget, you should be able to roughly estimate the amount of income that you can designate to make a home mortgage payment. With some lenders, you can become prequalified for a home mortgage, but they will want to know how much you can afford to spend. In general, you should plan to spend no more than thirty percent of your total income before taxes on housing - so this can be a jumping off point for you to figure your home buying budget.
Know The Rates And Terms Of Common Mortgages
Familiarize yourself with common rates and terms of mortgages, and know which you would prefer to have. Ask yourself a few questions. How many years do I want to spend paying off my home? Do I want a fixed rate or an adjustable rate mortgage loan? Do I want to or can I afford to make a down payment? Will my lender add homeowner insurance to my loan, or do I want to get coverage independently? It is important that you understand the complexities of home mortgages before entering into yours.
Know Where To Save Money On Your Mortgage Loan
Saving money is very important when you are looking at buying a new home. You can save tons of cash by using an online lender for your home mortgage loan, not just in reduced costs and fees, but also in interest. Online lenders usually offer reduced interest on home mortgage loans because of the huge amount of competition between lenders. An interest rate reduction of just one-half point can save you thousands of dollars over the life of your mortgage loan.
Mary Wise is a personal loan consultant who has been associated with Bad Credit Loans and has more than thirty years of experience in finances. She has helped a lot of people to obtain Fast Unsecured Loans, home loans, car loans, unsecured credit cards and many other products regardless of their credit situation. If you want to learn more about Personal Loans you can visit her at http://www.badcreditloanservices.com/
Article Source: http://EzineArticles.com/?expert=Mary_Wise
No comments:
Post a Comment