Mortgage : Home Loans : Refinance : Home Equity Loans

The mortgage loan process is complicated and confusing to just about everyone especially first time buyers. Applicants need all the help they can get to facilitate the process. If you go into some mortgage broker’s office with that “deer in the headlights” look you could be asking for trouble-EXPENSIVE TROUBLE. These tips for first time buyers can save you a lot of money.

1. KNOW YOUR CREDIT SCORE. Knowing your credit score (FICO) and looking at your credit report is the very first step. If there are problems on your report it may take 6-12 months to fix so start the process early enough to make corrections and improve your score if necessary. A difference of a hundred points on your score can mean tens of thousands of dollars to you.

2. GET PRE-APPROVED. This important step will lead you in the right direction for the amount of money you can borrow and thus “how much” house you can buy. Don’t confuse this with getting “pre-qualified” which means nothing. Pre-approval is a thorough process involving all the steps for the loan application.

3. SHOP ‘TIL YOU DROP. Finding the right lender/broker is right up there in the importance category and requires some work, then looking for the best rates and terms. Remember this: IT IS A JUNGLE OUT THERE. Compare rates and terms with at least 2-3 sources and if possible get them to bid against each other for your business. Ask about any first time buyer programs that can save you big time.

4. DON’T BORROW TOO MUCH. It is tempting to take out a bigger mortgage to get that really nice house your wife wants. Mortgage money is easy money in a way and there’s plenty of it. The temptation is there and the lender is more than willing to accommodate. Remember that the bills start coming in next month. Lenders will let you borrow as much as 30-33% of your gross for a monthly payment. Experts say a more realistic figure is 25%.

5. KNOW YOUR CLOSING COSTS. You should get a “good faith estimate” as early in the process as possible. Closing costs include a wide variety of things that you’ve probably never heard of. Find out what they are and remember that a lot of the fees on the list are negotiable. The lender is going to be making hundreds of thousands in interest. The broker is going to be making a nice fee as well. Don’t let them nickel and dime you to death.

Knowing and using these five tips can ease you thru what for most people is an intimidating process-applying for your first mortgage loan. Who knows you might even save some money in the process.

Have lenders FIGHT for your business if you are in the market for a mortgage, home equity loan, or refinance. Get up to 4 FREE No Obligation Mortgage Rate quotes and FREE Home Equity Loan Information

Homeowners check out details on ONE MONTH FREE HOME SECURITY and great FREE Home Security Information

===========================================
For additional Mortgage Refinancing information
and resources visit Mortgage Refinancing.
(http://www.refinance-refinance.net)
===========================================

This entry was posted on Sunday, February 25th, 2007 at 6:09 pm and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.