Loan Yes Yes's!
Checklist for a Positive Home Loan Experience:
1. Work with a trusted advisor! Applying for a loan is a pretty personal thing. It really helps if you have someone on your side who expresses interest in you, rather than just trying to fit you in their ‘box’. If you are also buying a home, seek out a Realtor and Broker who work together for maximum effect on your behalf.
2. Borrow within your means! It is REALLY imporant to find out what you can afford before you go shopping for a home. Work with your mortgage planner to establish what you feel comfortable with in terms of a mortgage payment in context with your home ownership goals. Otherwise, you may be encouraged you to buy at the top of your borrowing power. (It's a fact that your realtor and lender make more commission the higher your purchase amount). Establish a monthly budget taking into account your personal needs, taxes, insurance and ongoing upkeep.
3. Understand your commitment! Many very sophisticated people go weak at the knees when they see financial documents. A good lender will take the time to explain the details of your mortgage with you well before you get to closing! Ask LOTS of questions.
4. Look beyond interest rates! With all the hundreds of loan choices available to you, a lender will recommend solutions to meet your specific needs. Listen and compare the effect of different products presented. Most people are actually far more motivated by a payment amount than interest rate. In some cases, lower rates = higher caps and you could be stuck in a few years if rates suddenly leap. Today's fixed rates are the lowest in 45 years but there are many ways to maximize your investment, including split or biweekly schedules to save a bundle on interest over the life of your loan (these are not things a bank likes to admit).
5. Consider your financing options! With so many new loans on offer it’s easy to accept a traditional loan option. Even adjustable loans work very well for short term investments or irregular cash flow. Carefully weigh up the benefits of financing your home to reduce other debt and lower outgoing expenses. In general, interest on a mortgage is tax deductible so refinancing to pay down consumer debt makes a lot of sense. Equity products are a great way to helping you fund urgent and unforeseen needs--use these products to your advantage!
Try our Home Readiness check: http://www.freddiemac.com/hrc/
Wishing you every loan sanity!
© 2009 susan templeton
1. Work with a trusted advisor! Applying for a loan is a pretty personal thing. It really helps if you have someone on your side who expresses interest in you, rather than just trying to fit you in their ‘box’. If you are also buying a home, seek out a Realtor and Broker who work together for maximum effect on your behalf.
2. Borrow within your means! It is REALLY imporant to find out what you can afford before you go shopping for a home. Work with your mortgage planner to establish what you feel comfortable with in terms of a mortgage payment in context with your home ownership goals. Otherwise, you may be encouraged you to buy at the top of your borrowing power. (It's a fact that your realtor and lender make more commission the higher your purchase amount). Establish a monthly budget taking into account your personal needs, taxes, insurance and ongoing upkeep.
3. Understand your commitment! Many very sophisticated people go weak at the knees when they see financial documents. A good lender will take the time to explain the details of your mortgage with you well before you get to closing! Ask LOTS of questions.
4. Look beyond interest rates! With all the hundreds of loan choices available to you, a lender will recommend solutions to meet your specific needs. Listen and compare the effect of different products presented. Most people are actually far more motivated by a payment amount than interest rate. In some cases, lower rates = higher caps and you could be stuck in a few years if rates suddenly leap. Today's fixed rates are the lowest in 45 years but there are many ways to maximize your investment, including split or biweekly schedules to save a bundle on interest over the life of your loan (these are not things a bank likes to admit).
5. Consider your financing options! With so many new loans on offer it’s easy to accept a traditional loan option. Even adjustable loans work very well for short term investments or irregular cash flow. Carefully weigh up the benefits of financing your home to reduce other debt and lower outgoing expenses. In general, interest on a mortgage is tax deductible so refinancing to pay down consumer debt makes a lot of sense. Equity products are a great way to helping you fund urgent and unforeseen needs--use these products to your advantage!
Try our Home Readiness check: http://www.freddiemac.com/hrc/
Wishing you every loan sanity!
© 2009 susan templeton