Here are some mortgage tips that can help you obtain a mortgage

with less hassle, and at a lower overall cost:

Determine how much home you can afford. Based on your income

and any long term debt, know the maximum payments you can be

certain of making comfortably. Home loans are serious business,

and buying too much home can build a mountain of debt. Make sure

you can make your payments comfortably; it shouldn’t be a

burden. Locate a mortgage calculator online that allows you to

enter your income and it will tell you how much mortgage you

can afford.

Make a budget. Do you know where your money goes? How much is

spent on unnecessary things? How much are your utility bills?

If you are buying a larger home, the utilities will most likely

go up. Will you be able to make payments on time and pay the

larger bills? Does the home you are considering require repairs

or upgrades? This tip recommends you figure these things into a

budget to avoid overspending.

Gather documentation. You will be required to show quite a bit

of documentation before you mortgage is approved such as IRS

returns for past years, W-2’s, proof of current salary, assets,

debts, records regarding child support or alimony and the like.

Become educated about mortgage types and rates. The tip is very

important. If you know the meaning of the mortgage “lingo”, the

types of loans available and what the current rates are, you

will be in a much better position to negotiate your home loan.

Start studying your options well before you plan to buy!

Consider a shorter loan term. The goal is to pay off the home

mortgage in the least time possible while allowing enough money

to live comfortably. You can save tens of thousands of dollars

in interest payments!

Don’t forget you will have to pay closing costs. Many people

forget to include these costs into their plans and end up

coming up short. Find how much to expect from your broker or

real estate agent.

We hope these tips have helped you on the road to making your

mortgage experience easier and less costly. Learn all you can

before applying for a loan.