Your Mortgage: What To Know


Mortgages can seem like the least exciting detail of a home purchase, albeit an important one. Your reluctance to deal with mortgage issues could actually be detrimental; unless you face the mortgage loan with attention and focus, you could make decisions that negatively affect the loan you actually get and the monthly payments you'll make until you own the house outright. Knowing these details and letting them affect your decisions is vital for a reasonable mortgage you can handle for decades.

The Loan Should Be Your Priority

You may be searching for your family's "forever home" and all of your thoughts are likely on what the property will look like, how many bedrooms and bathrooms the house will have and other physical features. However, waiting to fall in love could affect mortgage decisions. If you're avoiding mortgages until you locate the most perfect property for your family, you're going to make more emotional decisions when figuring out how you'll pay for it. You may agree to interest rates that are too high or stretch your finances too thin because you are committed to that perfect property.

Instead, the mortgage should be your priority. Knowing exactly what lenders are willing to offer and understanding what that will mean in terms of your eventual payments is paramount. Knowing you're approved for $300,000, for example, will stop you from looking at--and falling in love with--homes that are $400,000 or more. Have mortgage amounts in hand before agreeing to home viewings

Overpaying Could Be Unwise

You might have approached the home-buying process with thousands of dollars in the bank, knowing that a sizable downpayment is preferred. However, beware of using too much of your savings upfront. Deaths, job changes, divorces, and other life events can seriously affect your finances, and if you clean out bank accounts for a downpayment, you could regret it. Negotiate a decent downpayment without overdoing it.

Spending Matters

You may have an agreement in place with a lender, find a lovely property, and want to really make it look fantastic before moving in. New curtains, furniture, lighting, and even renovations could be on your list; however, waiting is key. Lenders will, at times, review all of your details before ultimately making you an offer. If there are huge expenditures, regardless of the reason, that could change the terms and amount of the mortgage they'll provide. Wait and reassess your spending needs later.

Actions and choices made before the sale is over can have real effects on your mortgage loan. Discussing different aspects of the loan with real estate and mortgage professionals, as well as securing it early, will benefit you. For more information, contact a local mortgage company like Rodney Anderson with Supreme Lending


11 January 2019

Borrowing What You Need

When it comes to borrowing cash for a new house or a nice car, how much money do you really need? Although you might be tempted to mortgage yourself to the brim or borrow a little more than you should, the fact of the matter is that everyone has financial limits. My blog discusses the impact of borrowing more than you need, so that you can make smarter decisions with your money. In addition to keeping you out of trouble, this valuable information might also improve your quality of life and protect your financial future. You never know, it could make all the difference.