Mortgage Tips

Posted by discuss | Mortgage | Sunday 13 December 2009 4:06 am

1. Get Pre-Approved

Ask yourself, “If I was selling a very expensive item (a home) would I want to sell it to someone if I did not know for sure that they could pay for it?” Of course not!

A home seller is in the same position. Along comes a prospective buyer who wants the seller to sign a contract to sell his house. If the seller agrees he will be taking his house off the market for a period of time – several weeks perhaps – waiting to close the deal. If the deal not close because the buyer could not get a loan the seller has lost a lot of selling time. He may also have lost another truly qualified buyer who bought a different house in the meanwhile.

Everyone is familiar with the concept that “cash” buyers often get a better deal or “discount” than others. That’s because the seller knows the money is good. When you are Pre-Approved you automatically become a “cash” buyer. Any mortgage lender will gladly review your financial picture and give you a written Pre. Usually there is no charge. Later, when you begin to negotiations, you are dealing from a position of strength. The seller is assured you can Close the deal!

2. Shop Around

There are so many different types of mortgages, rates, terms and conditions out there that they probably cannot be counted. But, at first, it seems simple. Go for the lowest interest rate. Right?

Sorry, the published interest rate is only the tip of the iceberg. Below the surface is a complex web of fees, terms, closing costs, points, discounts and more. The list is endless. The charges vary widely from lender to lender and may change depending upon credit history, employment history, income, assets, loan type and other factors.

The only sure way to get the best deal is to shop, shop, shop. Try the Houston Mortgage Links for some good mortgage sources and mortgage information. Give them a try.

3. Shop On-Line

The availability of on line mortgage applications and even approvals is rapidly increasing. In some cases it is now possible to completely apply and get approval of your real estate loan on-line without ever leaving your home or office. Try it and see what you think.

However, please note this warning: You will be far better served by sitting down face to face with a lender in the city where you will be buying – someone you can physically find when there are problems.

We do recommend at least shopping the internet for rate and fee information before actually calling or meeting with a lender. Then, when you do meet face to face with a lender you will already be prepared.

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