The Art of Finding the Perfect Mortgage
The art of finding the perfect mortgage is elusive to many first-time home buyers or even those who have bought a home before but haven’t done so in many years and do not know what current conditions are like. I’m sure everyone has heard of the mortgage crisis that has occurred in the last few years within the U.S. And it has effected other countries and mortgage lenders as well. This makes it a little more confusing for home buyers shopping for the perfect mortgage for the home of their dreams. Real estate Austin TX – Find informative city, area, community and property details at HomeCity.com.
Even though it’s not quite as easy to get a mortgage now as it was several years ago, it almost is much better for the home buyer. Creditors expect you to have a better credit rating now to be considered for a home loan and they also are not as willing to offer no money down loans. This is what caused many of the problems. If you are serious about finding the perfect mortgage you need to make sure that your credit score is decent and that you have at least a small down payment (perhaps 5 percent) to put down on your home. This will show mortgage companies that you are serious about buying a home and will be much more likely to offer you a better rate which can be a considerable amount of money over the course of your loan.
You want to try and get a home mortgage loan that is fixed rate and not adjustable. An adjustable rate mortgage is usually not ideal because many of these loans seem attractive because the payments are less than a fixed rate loan, but only because these are typically low minimum payments.The minimum payment on an adjustable rate loan usually only covers the interest and can make it to where you owe more on the house than the house is worth. You don’t want to be in that situation. Also, interest only payments are part of this at times and you are again only paying interest and nothing on the principal of the home and with that you really aren’t paying toward the pricinpal ownership of your home at all. There are 15 and 30 year amortized loans with an adjustable rate mortgage which is similar to a traditional fixed rate loan except that your interest rate can change. This can cause many problems if your house payment suddenly becomes extremely expensive and out of your price range. With a fixed rate loan you know exactly how much you will be paying per month for the next 20 to 30 years and it will not change.
While finding the best rate is important as stated before, if only a half of an interest point separates a company you wholeheartedly trust to be honest with you through your home buying process and another company that you aren’t 100 percent sure about, then go with the company that you wholeheartedly trust. A half of an interest point may save you a bit of money, but dealing with a company that you trust is worth its weight in gold. They will make sure and answer all of your questions and they will make sure that the home buying process is smoother for you. When selecting a mortgage company, if there isn’t one particular company that you trust, do your research. Ask your friends about their home buying experiences and mortgage companies that they used. Check with the Better Business Bureau and research online about the mortgage company to find out if they are the type of company you want to buy a home through.
These elements combined are truly the keys you need to master the art of finding the perfect mortgage. Take your time, do your research, and get the best deal you can with a company you can trust.