As you apply for a home loan or look to refinance your home, it
is important to understand your situation and how it will be
affected by the type of loan that you will be applying for.
But first, it is important to find out why you need the loan.
For instance, do you need it for a home loan.
The next step is to do your research in order to escape the
headaches and hassles that plague the home loan process. During
this process, you should consider two major factors: How much
you can afford and how to compare the different lending
Let's take a look at each...
How much you can afford:
The most important factor to getting the right kind of mortgage
loan is to know how much you can fit into your budget. That way,
you can ensure that you are staying within the proper budget
limit. When calculating the affordability factor, it is
important to take into account these three factors:
Income- The key is to know how much you make each month
in relation to a mortgage payment. The rule of thumb is that the
payment should not exceed 27 percent of your total income.
Debt- Obviously the less debt you have, the better your
financial situation. So by having less debt, you will be in a
better position to afford the house of your dreams.
Down Payment- A house that requires a large down
payment will require you to spend more money upfront. In some
situations, you can spend up to 20% of the selling price with 3
to 6% in addition for closing costs.
How to compare mortgage loans:
In addition to considering your finances, it is important to
carefully research the various lenders that are available to
consumers. Here are just a few factors to take into
Compare lenders at the same Interest rate and lock in period.
That way you will be able to properly compare the different
Every lender has associate fees including points and various
costs. Each company is different, but it is important to factor
in all these costs to fully understand how much your mortgage
loan will cost
Once you have compared both of these factors, you should find
the one that has the best rate
After discovering the best rate, you will be able to discover
the home loan that fits your budget and your unique situation.
By understanding the home loan process and what type of loan is
right for you, it will simple to get the best possible home loan.
New Home Construction Loans 101
When you are ready to build your first home or that dream home
that you have been wanting for so long you will probably wind up
needing help with the financial part of the building process.
The funding for your new home is available through new...read more
Home Equity Loan Refinance - Important Facts
Refinance refers to applying for a secured loan intended to
replace an existing loan secured by the same assets.You must
speak with a finacial advisor before you decide to refinance.
Refinancing the loan you had taken at higher rates is a...read more
How to Qualify for a Home Mortgage Loan
Are you considering applying for a mortgage loan to purchase
your first home? If so, you should read the following tips below
that will make the process easier!
If You Have a Good Credit History It Is Easier To Qualify For