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Avoiding Financial Stress By asking the right questions, and knowing exactly what your needs and options are, you can find the right loan for you. Certain approaches you can take while mortgage shopping may reduce your costs or save you money.
It is still true that the better qualifications you have, the lower your interest rate will be. However, there are mortgages available for almost everyone; it's the interest rates or the down payments that vary.
Before speaking with a lender, know what monthly dollar amount you feel comfortable committing to. Then when you discuss mortgage pre-approval with your lender, it is easier for you to determine the monthly amount and what value of home the monthly amount translates into. Do not put yourself in the position where you will be paying more each month than you intended simply because the "dream" house requires it.
Do your research on the types of mortgages available to you and find the one that best suits your needs. There are a number of considerations to be made in terms of finding the best mortgage for each individual:
• What type of market are you in? Are the interest rates falling or rising?
• Do you want a fixed mortgage rate, where you will always know what your payment is going to be?
• What schedule do you earn income on? If you receive a large annual bonus, for example, consider an interest-only loan
• What are your long-term goals? Do you intend to resell the property within a short time (say, three, five, seven years)? If so, ask about ARMs (adjustable rate mortgages)
• Are you a first-time buyer? There are many programs, some local, some national, available to help renters make the step up to home ownership
As part of my service to you, I will review your situation with you and help you every step of the way. Many clients come to me with an established relationship with a mortgage broker; however, I generally feel that a second opinion is always advisable. Many of the bigger banks, for example, simply do not have access to some of the most flexible loan products available. Whether you need a trustworthy loan officer or just a second opinion, I will be happy to provide you with the names of reputable mortgage brokers with whom I have worked in the past.
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