If you are thinking about looking for a home mortgage loan, you can help yourself by going through what many experts call “self pre-qualification”. In this case, you would take some specific steps to prepare yourself so that you will be approved for the loan and not denied. For starters, you want to do everything possible to get your finances in order so you have a solid credit score. When you begin talking to various lenders, one of the first things they will do is run your credit report. Depending on your credit history and credit score, you would be … Continue reading →

Just as when you purchase a new home, the process of refinancing can be a little daunting. In addition, while you have various costs associated with closing on an initial mortgage loan, refinancing a home also means associated costs. Therefore, if you already own a home but want to refinance, you need to understand what costs would be included. Keep in mind that people refinance for a number of reasons. This may come at the end of a Balloon loan, for debt consolidation, to take out equity, or perhaps to lock into a lower interest rate. Regardless of why you … Continue reading →

One of the scariest aspects of buying a new home is dealing with the financing. However, with some financing tips to use as a guideline, it does not have to be. One of the best tips is to know what you qualify for before you even begin shopping for a new house. With this number, you are not wasting your time looking for houses outside your approval range. You can determine this by using any online mortgage calculator or meeting with a reputable lender. Then, it is important to understand mortgage brokers. These “companies” sell mortgages for a number of … Continue reading →

Getting an appraisal on a prospective new home is vital. A reputable appraiser is a professional hired to determine the value of the new home based on the price set by the sellers. To come up with the value, the appraiser will look at other homes within the same vicinity that are of the same size, age, and sometimes, condition. For the lender, the appraiser’s information is crucial, helping the lender know how much money you would be lent. After all, the lender’s goal is to protect him or her just in case you should run into financial difficulties and … Continue reading →

With refinancing, you have a number of things to consider. For one thing, you need to think about title insurance. After all, even though you are refinancing, you are still taking out a new mortgage loan. Therefore, the lender will require you to purchase lender’s title insurance, which will protect their investment. Now, when refinancing, you do not need to buy new owner’s title policy since the one you bought originally would still be good. Additionally, when refinancing your home, you might be able to get a reissue or a discounted rate, but only if it has not been too … Continue reading →

For some people, refinancing a home is a great move, an excellent way to save money long-term. However, refinancing for other people means coming up with significant money and then ending up with payments in the same ballpark. For this reason, any time you consider refinancing, you want to do your homework first to make sure it is a wise decision. One of the considerations for refinancing would have to do with points. Typically, the less time you maintain a loan the more expensive points are. Therefore, if you plan to live in your home for a long time, it … Continue reading →

If you own a home but have high a high interest rate or an unsatisfactory loan, this might be the time to refinance. However, before you make any decision, it is important to know that just as you had to pay costs associated with the home’s original purchase, refinancing also includes costs. Therefore, you need to consider a few things first to make sure refinancing makes sense. For starters, look at the amount of time you plan spending in the house, which will have a huge impact on your decision. Additionally, your current tax bracket would also come into the … Continue reading →

To ensure you get the best possible service and loan options possible, you will need to play an active role in the lending process. It is true that the lender will be providing their services for you, but you too need to invest some time to make sure communication is accurate and that you know what you “need” versus “want.” Here are a few simple strategies to help you along your way: Because your home is the collateral against a home equity loan, doing everything possible not to jeopardize it should be your number one priority. Therefore, these monthly payments … Continue reading →

At some time or another, you will likely reach a point of deciding to refinance your home mortgage. Approximately 65% of all mortgage applications in the past five years were specifically for refinance, especially with interest rates being at an all-time low. In fact, with rates dipping as low as 5.85%, the lowest they have been in 40 years, perhaps you should be thinking about refinancing your home loan. Just remember that just because interest rates are low does not mean money is free. In other words, you would enjoy lower interest, which would save you money in the long … Continue reading →

Sometimes, understanding everything associated with a home loan can be confusing. Because of this, we wanted to provide you with some information to help with some of the common terms you would hear when buying or selling a loan. 30-Year Mortgage Loan For this type of loan, during the first 23 years, the majority of the monthly mortgage payment goes toward interest rather than principle. Because of this, you would also get a larger tax deduction initially. 20-Year Mortgage Loan For the 20-year mortgage, interest rates are typically lower than what you would get with a 30-year loan. For this … Continue reading →