Locating a decent mortgage company shouldn’t make you feel heady. There are many things to consider when finding a mortgage lender. This piece is meant to give you the fundamentals of getting a mortgage lender you can trust. Find out more by reading this advice.
Save enough money to make a down payment. Lenders may accept as little as 3.5% down but try to make a larger down payment. If you put down 20% of your total mortgage, you won’t have to pay private mortgage insurance and your payments will be lower. You will also need cash to pay closing costs, application fees and other expenses.
Watch out for banks offering a “no cost” mortgage loan. There is really no such thing as “no cost”. The closing costs with “no cost” mortgages is rolled into the mortgage loan instead of being due upfront. This means that you will be paying interest on the closing costs.
Avoid fudging the numbers on your loan application. It is not unusual for people to consider exaggerating their salary and other sources of income to qualify for a larger home loan. Unfortunately, this is considered fraud. You can actually be criminally prosecuted, even though it doesn’t seem like a big deal.
If your financial situation changes, you may not be approved for a mortgage. Don’t apply to get a mortgage unless you have a steady job. Avoid changing jobs until the lender has approved your loan because they have based their decision on your current employment situation.
When considering the cost of your mortgage, also think about property taxes and homeowners insurance costs. Sometimes lenders will factor property taxes and insurance payments into your loan calculations but often they do not. You don’t want to be surprised when the tax office sends a bill and you learn the cost of required insurance.
You can feel more empowered when you know the right information. You won’t feel like you are lost in a maze as you apply for a mortgage any longer. Use the information shared here and you will feel more confident about a home loan.