How To Find the Best Mortgage For Your Home
Posted by Mike on April 2, 2006
1. Prequalification is definitely the first step when you decide you want to buy a home. Getting prequalified is an easy process and gives you peace of mind when shopping for your home. Prequalification begins the process of formally applying for a mortgage, and gives everyone a clear roadmap of the financial direction they are headed. Your mortgage broker (ask your Realtor for a recommendation) will give you a written prequalification done easily for you at no cost and no obligation, even over the phone!
2. You must know what is the monthly amount that you feel committing to. Talk to your mortgage broker not only about what level you qualify for but also about what you want to pay out each month and be clear on this. Find what this monthly dollar amount translates into in terms of value of home. This ensures that you won’t be wasting time looking at homes not in your price range.
3. Think about your long term goals. How long do you feel you will be owning this home? Is your income going to be changing (up or down) in the near future? In what direction are interest rates moving? These questions help determine the right mortgage amount for you.
4. Find out what prepayment privileges are available and the payment frequency options. Making frequent payments (weekly or even biweekly) can literally take years off the length of your mortgage. This will also lessen the amount of interest you pay over the term of the mortgage.
5. Two very favorable options in a mortgage are portable mortgages and assumable mortgages. Portable mortgages are permitted to be taken with you when you buy your next home. This is great because unless you’re buying a home that is much more expensive you won’t have to go through the entire mortgage process again. Assumable mortgages are great because the buyer of your home can take over your mortgage when you move to your new home. This is a powerful tool at the negotiating table which makes your home very desirable.
6. Just as you shouldn’t buy a home without a Realtor, you should also work with a mortgage broker. Mortgage brokers make an immense difference in the cost of your mortgage. What’s even better? Just like a Realtor when buying a home, you receive the services of a mortgage broker with no cost or obligation.
If you have any questions or would like more information, please contact me, Michael Emilio Rodriguez by email and by telephone at 305-235-2621 x182.
