Saving Money and Qualifying for a Mortgage
Even in this economy home ownership places high on the list of goals for most Americans. New rules in qualifying for a mortgage have become more complex. Home buyers in Stockton and Lodi capitalize on the market’s shortcomings by researching the mortgage market. Mortgages are products and they are not all the same and that’s why it is important to shop the mortgage market. Buying a home is one of the most important financial decisions you can make.
It is a wise home buyer that researches and shops for a mortgage as well as the home and often they can save money. Small savings can mean significant money over the life of your mortgage. To help you save your hard-earned money, consider these tips:
Guard you credit Score: small lapses in making late payments can mean higher interest rates or not qualifying for a mortgage at all. Check for inaccuracies in your credit record, 1 in 4 potential home buyers find incorrect information on their credit record and this can keep you from qualifying for a mortgage and also cause your mortgage interest rates to climb. Take initiative to carefully examine your credit report. If you find mistakes, document them clearly so you can make a case to the credit agency. Do not let inaccuracies ruin your credit score and mortgage terms.
Pick a mortgage loan type that fits your budget: FHA mortgages are probably the easiest with only a 3.5% down payment. FHA mortgages are not only for first time buyers, many move up buyers take advantages of them with mortgage amounts of $700,000 plus. Conventional mortgages can require down payments from 10 to 20 percent.
Pick the right length of mortgage to fit you financial situation: Go for the shortest mortgage life that you can afford. First-time home buyers spend years paying off the interest before they reduce the principal on their home loans. You can get 15- or 30-year mortgages while most adjustable rate mortgages run 5-1 and 7-1.Fixed-rate mortgages offer the greatest control and security
Pay in advance. Make an effort to put an extra $100 each month toward your monthly payment. Making extra payments will shorten the life of the mortgage and save you money. The savings for a 20-year, $100,000 mortgage with 7 percent interest are considerable. You’d save $20,000 and trim the mortgage by four years. When you send the extra payment, tell the mortgage holder that it goes toward the loan principal.
The Lilly Team can point you to excellent sources for mortgage loans as well as assist you in finding that perfect home. We have been helping home buyers realize their real estate goals for 30 years call us today at 209-479-9222 e-mail us at thelillyteam@comcast.net or visit our web-site at www.hughlilly.com .
Stockton Neighborhoods: Brookside, Lincoln Village, Morada, Morada Ranch, Beck Ranch Spanos Park, West Spanos Park, Weston Ranch, Port of Stockton, UOP.
Stockton and Lodi Zip codes: 95208, 05204, 95205, 95206, 95207, 92209, 95210, 95212, 95215, 95219, 95242. 95240
Real Estate Multiple Listings: Bank owned homes, Stockton and Lodi Foreclosures and REO’s, Homes in Stockton, Homes in Lodi, Stockton California Listings, Stockton MLS Listings, Lodi MLS Listings, Ca Real Estate, Home Buyers, Stockton Homes for Sale, Lodi Homes for Sale, Stockton Short Sales, Lodi Short Sales, Short Sale Specialist.