Mortgage Regulations
Have Changed . . .
Mortgage regulations have
changed significantly over the last
few years, making your options
wider than ever. Subtle changes in
the way you approach mortgage
shopping, and even small differences
in the way you structure
your mortgage, can cost or save
you literally thousands of dollars
and years of expense.
Things You
Must Know Before
Obtaining a Mortgage
Before you commit your hard
earned dollars to monthly mortgage
payments, consider these 6 issues.
Effective consideration of these
important areas can make your payments
work much harder for you.
❶ You can, and should, get
preapproved for a mortgage before
you go looking for a home.
Preapproval is easy, and can give you
complete peace-of-mind when shopping
for your home. Your local lending institution
can provide you with written preapproval
for you at no cost and no obligation,
and it can all be done quite easily
over-the-phone. More than just a verbal
approval from your lending institution, a
written preapproval is as good as money
in the bank. It entails a completed credit
application, and a certificate which guarantees
you a mortgage to the specified
level when you find the home you’re looking
for.
❷ Know what monthly dollar
amount you feel comfortable committing
to.
When you discuss mortgage preapproval
with your lending institution, find out what
level you qualify for, but also pre-assess for
yourself what monthly dollar amount you
feel comfortable committing to. Your situation
may give you a preapproval amount
that is higher (or lower) than the amount of
money you would want to pay out each
month. By working back and forth with
your lending institution to determine what
this monthly amount is, and what value of
home this translates into at today’s rates,
you won’t waste time looking at homes that
are not in your price range.
❸ You should be thinking about
your long term goals, and expected
situation, to determine the type of
mortgage that will best suit your
needs.
There are a number of questions you should
be asking yourself before you commit to a
certain type of mortgage. How long do you
think you will own this home? What direction
are interest rates going in, and how
quickly? Is your income expected to change
(up or down) in the near term, impacting
how much money you can afford to pay to
your mortgage? The answers to these and
other questions will help you determine the
most appropriate mortgage you should be
seeking
“Subtle changes in the way you approach mortgage shopping, and even small
differences in the way you structure your mortgage, can cost or save you literally
thousands of dollars and years of expense.”
cont’d
Get the Right Information
Whether you are about to buy
your first home, or are planning to
make a move to your next home, it
is critical that you inform yourself
about the factors involved.
Industry research has revealed
that there are 6 common mistakes
that most homebuyers make in
mortgage shopping that can have a
significant impact on the outcome
of this critical negotiation. If
handled correctly, these issues
could result in a mortgage that will
cost you less over a shorter period
of time.