How To Get Mortgages Best Deals| How To Get A House Mortgage

Shopping for a mortgage is a lengthy process, although some companies will lead consumers to believe that they can provide faster service to get you in your dream home. Unfortunately the housing market experienced a significant period of depression because of so many risky mortgages that were handed out like candy and getting a mortgage today is not as easy as it once was.  Mortgage rates have been at all time lows and continue to fluctuate daily.  In some cases, I’ve heard of some friends who had locked in a favorable 30 year mortgage rate in January of this year and they are already looking to refinance.  Now that is finding a good deal on your mortgage rate! If you’re looking to refinance or just get a mortgage rate for the first time, here’s some to tips to help you out

Finding a Mortgage

You can make use of the Internet to find the best interest rates on mortgages in your area. Starting with your own bank may be your ideal starting place because you already have a relationship with the lender. If not your own bank, a local credit union or smaller community bank may be the best resource because they are looking to bring in quality local customers.
Be wary of mortgage lenders who may not be very established, who received bad ratings from the Better Business Bureau, and those who push high-pressured sales tactics to get you to sign for a mortgage. The companies advertising online and through other media resources claiming to make it easy for you to own a home may not be working on the up-and-up. There is no easy way to apply for a mortgage and the process is far from easy. You will end up paying for a mistake for years to come.

Getting a Deal on Your Mortgage

A decision to take out a mortgage loan may be the biggest financial decision in your lifetime, especially if you are a first-time homebuyer. The only tried-and-true way to get a great deal on a mortgage is to keep your own personal finances in check. Here are the primary components of ensuring a good interest rate on a mortgage:

If you do not have excellent credit (720 or higher), you may be charged a higher rate of interest should you be approved for a mortgage at all. Mortgage companies are tightening the purse strings since the housing market crash and expect borrowers to be able to prove financial responsibility. The best thing to do is take the time to check on and improve your credit score before even applying for a mortgage loan. Pay your bills on time each month and do not spend more money than you have.

Save For Down Payment

A lender wants to see commitment on the part of the borrower. Saving a sizeable down payment to put toward the house is one sign to the lender that you are dedicated and ready to purchase your own home. At least 10% down is required unless you go for a VA, USDA, or FHA mortgage loans which require a smaller percentage down. Ideally, a 20% down payment will decrease your interest rate and make you eligible for the best mortgage deals currently on the market.

Don’t Rush

While situations may arise when you find yourself desperate to get a mortgage loan, the majority of people who want to be homeowners will know in advance what their housing goals are. If you are in too much of a hurry to buy a home, you will likely make decisions that are not in your best interest. Don’t rush through the process. Instead, take the time to speak with the different lenders in your area about what offers they have available. Decide what kind of mortgage makes sense for your situation and finances. The more legwork you do before applying for a mortgage, the more options you’ll have to get a mortgage.

House Buying Process Tips

For a first time home buyer, the process can get quite overwhelming, giving you the feeling that the financial decisions are rapidly spinning out of control. When it comes to real estate, most people don’t have a lot of experience or know a lot about it. In all actuality, buying a home is actually a simple process. All you need to do is understand the basics, which will go a long way in helping you buy your very first home.

The first thing you should know is to avoid pre payment penalties at all costs. What this means, is that if you buy the home then later want to sell it before the balance of your mortgage is due, you’ll have to pay a penalty. You can find a variety of great loans that don’t include these types of penalties. If you find a loan that does include pre payment penalties, you should immediately turn it down and look for another loan.

You should also be on the lookout for good ARM’s. If you have a good ARM, then your interest rate and monthly payment will adjust at the exact same time. This will make sure that your interest doesn’t affect your monthly payment. If your interest rate does affect your payment, then you will notice the unpaid interest reflecting the overall amount of your loan balance.

You’ll also want to get pre approved for your house as well. This lets the seller know that you are serious about buying, and will normally work in your favor to give an edge - which is especially handy if there are several others interested in purchasing the home. Getting pre approved will also save you a lot of time as well. If you can’t get approved for a loan, you shouldn’t waste your time inspecting it, trying to get a good interest rate, or negotiating with the seller for your ideal price.

Before you purchase a home, you should always be aware of how much you can afford. Before you attempt to purchase a home, you should always go over your budget and figure out how much money you can spend on a mortgage payment. If you manage your money smart and know your finances, this shouldn’t take you hardly any time at all. On the other hand, if you don’t know your finances, this will take you a long time indeed.

If you’ve already purchase your first home, you should always avoid taking any type of home equity loan. These loans can be very tempting when you get in an emergency and need cash, although most home equity loans add up to more than the value of your home. You should never, under any circumstances take a home equity loan, as there are many other ways that you can clear up your personal problems without having to jeopardize your home.

Keep in mind that the above are just a few basic tips and that there are many other things you’ll need to know before you buy your very first house. You’ll need to be familiar with private mortgage insurance, special loan programs, fixed rate and adjustable rate mortgage, and several other things. Buying a home is an easy process, once you know a bit about it. If you familiarize yourself with buying a home and learn all that you can about what is involved, you’ll find the home buying process to be easier than you ever thought possible.