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Choose The Right Mortgage Advisor And Save Thousands |
By:
Dean Weber |
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Choose the Right Mortgage Advisor and Save Thousands
by Dean Weber
If you are thinking of buying a home and are in the market for a home mortgage, you'd better start doing your homework right now. The reason is pretty simple - things have changed and the days of easy home mortgages are gone.
During the real estate boom of the last few years prices were rising like crazy and mortgage money was easy to come by. But as things started cooling off most banks and lending institutions began to tighten their lending practices.
Perhaps most important, interest rates have been rising slowly for a number of months. This may not seem like a big deal if you are new to the home buying market. But on a large home mortgage even a small interest rate increase can make a very big difference to your payment.
In most cases the interest rate can even make the difference between being accepted or rejected for a home mortgage. That's because in order to qualify for a home mortgage your ability to afford the payment is one of the most important criteria for getting approval. And a higher interest rate could easily put the payment out of reach.
**Your home mortgage advisor is important**
Whatever you do, don't start making home mortgage decisions until you hook up with someone who has a lot of experience in the business. Find an advisor who has intimate knowledge of current real estate and home mortgage conditions and has access to many alternatives.
This will usually not be your friendly neighborhood banker. Banks work with their own products and are not interested in making you aware of other products that might offer a better deal.
Look at it this way: if you have a good credit rating you can probably get a better deal than the one your bank is prepared to offer. On the other hand, if you have credit problems or need some creative suggestions, you'll probably not get them from a bank. They want you to conform to their requirements and rules.
In other words, a bank is fine if you don't care about getting a better deal. However, if you want lower cost or more flexible alternatives or you need creative suggestions you're better to go somewhere other than your bank.
The altenative is to find a home mortgage advisor who knows the market inside out and who has access to many different solutions from many different sources.
**Good news in hard times**
Even when credit starts tightening up there are ways to get a good deal on a home mortgage. Sometimes these good deals involve government backed loans such as FHA loans. These loans exist to help people with even horrible credit to borrow as much as 97 percent of the value of their home. The primary requirement is that they have the necessary income to make regular payments.
Home mortgages like these make home ownership possible for many people who might not otherwise qualify. So they are very good deals for many people. But many traditional lenders will not recommend them because there is not enough profit in it for them. Some traditional lenders are not even aware these alternatives exist.
In fact many mortgage brokers won't recommend these loans either because they take extra work. However, from your point of view it is really worth finding a mortgage broker who will find the best deal for you. It could save you literally thousands of dollars over the life of your mortgage, and it could make an otherwise impossible mortgage a reality.
**An ARM works for some people**
Another mortgage option is called the "option adustable rate loan", commonly referred to as an ARM. If you qualify for this kind of home mortgage you could pay as little as 1% interest against a "real" rate of about 7.25%. To qualify you need a very good credit rating.
But beware. The unpaid interest is added to the principal of your loan, so the amount owed actually goes up over time. That means an ARM loan must be used very cautiously because a home owner can end up owing more than they can afford to pay.
But this approach does give a borrower the option of making drastically reduced payments for a short period of time. It is used most often when a person has serious short term cash flow problems, or when they forsee their financial situation significantly improving a year or two in the future.
**The right mortgage makes a difference**
While it is more difficult than ever to get a very low rate on a home mortgage there are still money saving deals available if you know where to look. That's why it is crucial to deal with an experienced professional advisor you can trust. Look for someone who has intimate knowledge of the current home mortgage situation and who is experienced in dealing with your type of situation.
The best advisor is a broker with years of experience and hundreds of different lenders to draw on. That kind of broker can find an affordable mortgage for almost everyone.
Dean Weber has more than two decades experience as a home mortgage advisor, providing commercial mortgages and all types of loans. Check out these mortgage client testimonials to see how much actual home owners appreciate Mortgages-Mall.com You are welcome to reprint this article - but get your own unique content version here.
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Article Source: http://www.statssheet.com/articles/article54254.html |
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