A Personal finance blog for saving money and earning more and thus having a better life
If you are looking to buy a house of your own, then you will need to save up the money for a mortgage down payment. This is the cash that you bring to the closing table when purchasing a home. Although you may borrow money from the bank in the form of a mortgage or home loan, in most cases a portion of the money will need to come from you.
The higher your down payment, the less you will need to borrow to purchase your home and you will have smaller monthly repayments to make.
For many, the dream of being a homeowner is fulfilled with the help of a mortgage loan. The mortgage application process can, however, be a bit hectic with so many requirements. But with a little planning and taking the necessary precautions, you should be able to get your mortgage approved with minimal hassles.
A mortgage is one of the biggest debts anyone can have. That’s why it’s important to avoid some common mistakes that could turn costly. Here are a few that you need to watch out for:
Purchasing home for an individual is one of the most humongous decisions that you need to make. More importantly, it is likely one of the largest purchase that you need to ever make. Thereby it is no such surprise that there are a plethora of ways you can trip up. It is being advised that before you get out for the purchase you need to finance the deal.
Shopping around for a mortgage is a must for homeowners, yet there are numerous individuals who are prone towards making mistakes and finally end up in getting the wrongful deals.
When you first anticipate the reality of wanting to become a homeowner, it will also be the time when you get serious about where your credit card stands.
Consumers that tend to pre-plan for all things financial should recognize the importance of getting the financial house in order, including attention to their credit scores. However, that is not always the case with perspective homeowners and as a result they end up losing thousands or hundreds of thousands of dollars over the lifetime of a loan.
Importance of Advanced Planning For those who are not advanced planners, getting approved for a mortgage may prove more difficult than initially thought. Mortgage lenders in today’s economy expect a lot more from borrowers than they have in the past decade. Lending requirements are much stricter and borrowers will need to be prepared to meet these expectations.
So, you’re ready to make the big leap into home ownership? Good for you. Home ownership can be a great experience and holds a number of tangible and intangible benefits. But first, you need to actually buy that property, which, especially if this is your first home, can feel more than a little complicated.
Understanding the mortgage process
A home is a very important part of every human being’s life. It is a source of great comfort and stability. This is the reason as to why choosing to purchase a home is normally the biggest financial transaction a person will ever make in his or her entire life. It is thus then very important that this decision is reached at with a lot of caution.
It is vital that the right amount of research is conducted before the decision is made and that all required preparations are made in time. It is granted that every home buying transaction is unique in its own way. However there are ten very common things that apply to every home buying transaction.
I took a leap of faith and bought our home, our first home. In a series of posts I’ll write about the buying experience, the lessons learned and best practices. in this article I am going to write about mortgage loan shopping, and how did I shopped for mortgage loan comparing 10 different banks, sitting in my office cubicle.
I heard stories on extensive and hectic mortgage shopping that involves going around banks, making phone calls to bankers and what not. Even my colleagues had to go through hours and hours of research and travel to get the best mortgage.
Well, my method searching only lasted for 1 hour. I made no calls and received 10 calls from bankers on my cell phone.
We are not home owners yet but, we have many home owners friends who recently refinanced their mortgage. We are in our 30’s so most of friends are and refinancing at this age, makes every sense. On a 30 year mortgage even a quarter percentage point gain in interest rate means saving a few thousands of dollars. This article is geared towards home owners who are looking to refinance
You may think that refinancing should bring some mortgage payment relief to you as long as you manage to lower interested rate. This sounds great, but in many cases, refinancing can cost more in processing fees than it could actually save you in monthly payments.
I’ll probably soon be in market for home loans. Making myself prepared for the intricacies of mortgage. This will be our biggest ever financial decision. Want to venture in to it slowly to avoid hasty decision. I have written about some of my finding in tips for buying home and first things to consider while looking for home.
Purchasing your own home may be the biggest expense you will ever make. If you have saved for a deposit and have your finances under control, the next step is to look for the right home loan for you. Many lenders will offer you many different options. Check them all out but go for a trustworthy lender with a good reputation.
Buying a home is one of the most expensive investments in most peoples’ lives, and therefore selecting the most fitting mortgage type and negotiating a fair purchase price should be paramount decisions. It’s commonly accepted that home buyers can afford mortgages costing up to 30 percent of their monthly incomes, and paying more than that amount may set buyers up for financial hardships.
Buyers who keep their monthly mortgage costs low are typically able to pay their principals down ahead of schedule, saving them interest costs. Some buyers who’ve recently sold a home or have a great deal of savings may opt to purchase a home outright with cash, avoiding mortgage costs altogether. But which approach is the smartest decision for a home buyer?
There is no widely accepted right or wrong answer. The best answer boils down to home buyers’ circumstances and their ultimate goals. Some buyers simply do not want the burden of debt and would prefer to own their homes, sacrificing available cash. Others prefer to invest elsewhere, save for retirement or vacations, while aggressively paying down a mortgage. Each method of purchasing a home has a list of benefits and drawbacks.