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Get a mortgage pre-approved before home shopping
A loan Pre-approval should be in writing and make sure they have reviewed your credit, A good mortgage broker or loan
officer will review your credit during the pre-approval process, and let you know of any issues that need to be worked
out before you can close on a home. It will also let you know how much of a home you can buy before you go looking for
your new home.
Know your monthly housing payment you can afford
Many people are surprised when they get their loan pre-approval because the loan officer says they can get more home than
they thought they could. If this happens to you, you need to asses if you really want to commit to spending that much of
your monthly income on your home. If you aren't comfortable spending that much, then that's ok, just shop for a house with
lower price. Just because you qualify for it doesn't mean you have to spend it all.
Different mortgages are for different situations
Your housing needs long term can affect what type of loan you may want to take. In certain situations ARMs (adjustable rate
morgages) are the right type of loan. There are also 15 year, 20 year, 30 year and 40 year loans. Ask yourself these
questions: How long will I live in this house? What direction are interest rates moving, and how quickly are they moving?
Am I expecting a signifigant raise in the near future? Is my job secure or might I be laid off? The answers to these and other
questions will help you to determine the most appropriate mortgage you should seek. Contact a mortgage loan officer from one of
our advertisers on this page to help you find a mortgage loan.
Understand what payment frequency and pre-payment options are available to you
Structuring your payments to match your income can shave years from your mortgage. If you are paid weekly or bi-weekly, you can
set your payments up to match your income and pay your home off quicker. If you are paid monthly or semi-monthly, even paying a
little bit extra every month on your home loan can take years off your mortgage balance and help you build equity quicker.
You should consider using an independant mortgage broker
Mortgage brokers are a very good way to shop your loan without filling out a bunch of applications. Mortgage brokers work with many
different lenders to find a source for your home mortgage. They can pull your credit and prepare your file and then shop it around
to their various lenders enabling them to help you find a loan from many different home loan sources.
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