|
| |
Home :: Mortgage
Tips for a stress free mortgage
Buying a home is the biggest investment one makes in life. So having the
right mortgage is very important. Payments, taxes and insurance costs in a year
may be as high as 40% of gross annual income. In the process of finalizing a
loan with a lender, one should follow the right steps and avoid shortcuts. In
general the following steps should be followed in pursuing a mortgage for your
home:
Get the mortgage pre-approved by the lender. Realtors will be happy to deal
with people who have pre approved mortgage.
Get everything in writing. If a realtor says the appliances are included, get
this writing.
While rate is important, one has to consider the overall cost of the mortgage.
Consider elements like APR, fees, any discounts etc.,
Get any lock-in rates in writing as also the period for which this lock-in is
valid. Longer the better.
Shop around for lenders. Get quotes for the mortgage from at least 4 lenders
and compare them.
Avoid dual agents that is the same agent for the buyer and seller. He cannot
be fair to both.
Get the home inspected by a professional home inspector and get agreement in
writing from the seller for repairs if any.
Shop around for home insurance. Do not leave it until the last minute.
Do not sign documents without reading them.
Plan for moving to the new home giving sufficient time.
These are only some of the tips for a trouble free mortgage and moving into
the new home. As stated before, home buying is the biggest investment in ones
life and choosing the right mortgage is the most important factor for the
success of the entire process.
| |
|
