For those planning to get a mortgage, a great deal of financial preparation is needed in advance. You will need to understand all about home loans rates, types of mortgages, flexible and fixed rate home loans and more. You will also need to make sure that you have good credit, or enough money for a large down payment. A mortgage company will have a team of experts who can advise and guide you through every stage of the process, whether you’re looking to buy a home, refinance a current loan, consolidate your debt or deal with second mortgage lenders.
Financial planning for home buyers
When it comes to financial planning to buy a home, you can never start too early. Financial experts believe that your total monthly debt payments including a mortgage, should be less than 36% of gross monthly income.
Most home loan lenders require a down payment of at least 3.5%, though this might vary. You should also have funds to cover closing costs, pay for points and any other unexpected expenses.
Good credit is important
The majority of lenders look for good credit scores of 680 and higher, according to the Home Loan Learning Center. That’s why it’s important to keep tabs on your credit report, and make sure that it is error free. A low credit score can be fixed and this should be done before looking for a mortgage.
Sometimes it may be possible for home buyers to make up for a low credit score by making a larger down payment.
While negotiating a mortgage, it’s important to remember that any changes in your income or employment status can complicate and delay the process. Lenders look for stable employment and its best to stick with your job.
Finding good mortgage rates
A mortgage company will help you compare mortgages and find the financial solution that’s right for you. They may be able to help locate zero down home loans and even bad credit home loans.
This is actually a good time to get a home mortgage, as rates are near all-time lows. By the end of 2012, long term mortgage rates were as low as 3.31%.
Whether you’re trying to deal with commercial mortgage lenders or second mortgage lenders, expert mortgage professionals can help you find the the lowest rates and the quickest mortgage approval.
