Home Mortgage - A Home Mortgage used to be, something you obtained when you bought your home and then made payments on for 30 years. In todays Home Mortgage environment, you may refinance your Home Mortgage several times in the first 10 years. Working with a Mortgage Professional will help decide when is the best time to refinance your Home Mortgage investment.

The home mortgage tends to be a very large investment, and is usually one of, if not, the biggest financial investment a person will make. You should take extra care when looking for a company to work with to find a mortgage loan that is right for you. There are many mortgage loan programs and options available, and a quality hardworking mortgage professional should be able to help you find the one that is best for your particular situation. When applying for a home mortgage, make sure that you are working with someone that you feel comfortable with and you can trust.

A home mortgage refers to the financing for 1 to 4 unit homes. There are many types of home mortgages to suit your financial goals.

A home mortgage is a very important and integral part of your family's finances. Just as they probably have professionals that help you with the other aspects of your finances, many families now have a mortgage professional that works with them on somewhat of a continual basis. Your mortgage, along with the other components of your family's finances should be periodically reviewed and possibly changed when either market conditions or conditions in your financial situation or goals change.

A home mortgage will carry many benefits other then just owning a home. The interest you pay on the loan is tax deductible and you will be building equity in something as well. There is also the personal satisfaction that comes with owing a home that can not be described in words!

There are many home mortgages with different features. Basic variations include Fixed Rate Mortgage (FRM) and Adjustable Rate Mortgage (ARM), 30 year and 15 year amortization, 3/1 ARM and 5/1 ARM, fully amortized and interest only, etc. To help choose the perfect fit, enlist the help of a licensed mortgage professional.

If you are attempting to get your first home mortgage, be sure to call a mortgage professional to become pre-approved. The mortgage professional will be able to point you in the right direction, and tell you how much you can afford. Remember though, that only you know how much you can really afford. You need to feel comfortable with your monthly home mortgage payment.

A Home Mortgage can also be an equity line of credit or more commonly referred to as a HELOC. Most home equity lines use the prime rate as a base for setting interest rates and are adjustable rate mortgages.

Should I shop for a mortgage or a home first? - When starting the process of buying your first home it is a good idea to contact a mortgage broker and discuss your plans and the loan programs that would fit your situation.

Shopping for your mortgage is not as fun as shopping for a home. The mortgage process can be filled with stress and uncertainty. You worry that something is on your credit report that you didn't know about. You worry that your credit score isn't good enough. You worry when the underwriter ask for more documentation. You stress when your loan seems to be taking too long. Worrying about what could go wrong causes people to put off applying for a mortgage. This delay just adds to their stress.
A good loan officer can help minimize your stress and anxiety by anticipating problems and heading them off and by explaining everything to your satisfaction.

You should always get prequalified for a mortgage loan before you start looking for a house. This will give you an estimate of your monthly payments and what price of a home you should be looking for. When you find the house that you want with a real estate agent, your prequalification letter should be submitted with your purchase contract which will make your offer more favorable to the seller.

It is a good idea to contact a mortgage broker before you contact a realtor. For example a mortgage broker can get you approved for 100% loan or get your payments lower that you thought. This may give you the ability to by a nicer home than you might have anticipated.

Getting pre-approved for a mortgage before you go house shopping is a great idea. That way you’ll know exactly how much you have to spend, you’ll have a much stronger position when dealing with home sellers, and you will be that much further ahead when it comes time to complete the purchase.

Getting pre-qualified is the first step in the mortgage process. It involves supplying a lender with basic information regarding your debt, income and assets. From this information, lenders can get an idea of the mortgage amount for which you qualify, and it can usually be done at no cost.

Getting pre-approved is the next step. The process requires that you complete a mortgage application and supply a lender with all the necessary documentation to check your financial background and credit rating. You will then be told an amount for which you are approved.

Most real estate agents will not show you a home until you have been prequalified by a mortgage professional.

It is in everyone's best interest to determine if you qualify for a home. If you do qualify - You need to know how much of a mortgage you can afford, and/or how much of a mortgage payment you want to make. Shopping for a home without knowing this is pointless.

You will also want to know if the mortgage payment will fit within your budget, this will also give you a better idea as to the price range of the home you are looking for.

Having a solid prequalification will give you an edge when you are shopping for a home. Sellers will look more favorably on your offer than with someone who has not been prequalified. Also, having been prequalified will make your home buying experience more enjoyable as you will not be worried about getting approved for the home of your dreams.

Make sure you have a prequal letter ready and in hand when you visit your Real Estate Agent. This will give you more bargaining power when it's time to make a contract.

One thing that is very discouraging is when your shopping for more of a home then you can really afford. Take into consideration all hidden costs. It sure costs more to heat a 3200 sq foot home then a 1300 sq foot home.

Make sure you know ahead of time how you feel comfortable paying each month. You may qualify for more.

You should always shop for a mortgage first before the home. Just about every person out there can qualify for a home loan; however it is imperative that you find out first how much of a loan you qualify for based on your debt to income ratios (DTI). Second, you need to find out how much of a down payment is required or what is the lowest down payment allowed that a lender will approve you for. Again, just about anyone out there can actually qualify for a loan, but how much of a down payment is required is where some people actually have a hard time. If you have $5,000 to use for a down payment and your credit is below 500 and the lender is requiring you to have a $30,000 down payment on a $100,000 then this may not work out for you. An experienced loan officer will be able to assist you and educate you on what you need to do though so that you can soon qualify for a home loan that only required that $5,000 though. Therefore, always shop for the home loan, or mortgage, first before you start trying to find a home. A mortgage professional will be able to let you know first what you are able to look for in a home.

Shopping for a mortgage before a house is the best solution. Arranging a mortgage first will allow you to clearly see your financial situation before you lock in on a house you love.

Preparing for your First Home / Mortgage - There are some basic financial things you can do to get prepared for buying your first home. This will make it easier for you and your mortgage broker.

Start to collect and organize documentation:

• You should start to save and organize your pay stubs. You will often need the past 30 days worth of stubs.
  
• Go through your old tax returns and sort out your W-2s or 1099 forms. You will need the past two years W-2s/1099 and may need the past years complete returns
• Organize and gather your old bank statements. You may need these to show money to cover down payment and closing costs (last 2 months). These may also be used in lieu of other income documentation (12 months)
• If you have other assets, 401(k), Mutual Funds, Stocks, Life Insurance, etc. you may also need the past 2 months statements from those accounts.
• Check your credit. If you haven’t checked it yet, now is a good time. You can get one for free once a year. If you are working with a mortgage broker they may be able to sit down with you and go over your credit report. Start to clean it up if you can. If you have charge offs, or collections that you can pay off, or have already paid off, make sure they are accurately reporting.
• Save or get copies of your canceled rent checks. Most banks have an online check viewer. Print out or get copies from your bank of your rent checks for the past 12 months.
• If you have any student loans that are still in deferment, contact them and get a letter of deferment.

If you have experienced a major legal event that affects your finances such as a divorce or bankruptcy - keep all documents in a orderly and safe manner. There is a very good chance that some or all of the documentation from these proceedings will be needed in order to get you approved for the best possible mortgage loan. Borrowers with incomplete or missing documentation often get less favorable terms on their mortgage than ones who have such documents.

Congratulations! We would be happy to assist you on your pursuit of the American Dream.

When buying your first home, or any home, please keep in mind that you will not always get the keys to your new house until the mortgage has been recorded with the county and the funding of all money has taken place. Read your purchase agreements carefully because sometimes there may be a specific date or time given that you will receive the keys after the closing (example: the buyer will receive the keys to the property 3 days after closing).

It is generally in your best interest to use the services of a real estate agent. Be sure that your agent is acting as a buyer's agent and representing your best interests.
Using a real estate agent costs you nothing when you are buying a home!
Contact me to get the name of a qualified agent.

Start saving. Having savings can help with approval in many ways. Additional funds strengthen your ability to be approved. It helps to show that you have reserves. The savings can also be used for a down payment and closing costs. There are also several out of pocket expenses you should expect to have such as the Earnest Money and Appraisal and/or Inspections.

Ways to start saving:

• Pay your self first: This is a common savings technique. Pay your self first means the first thing you do on payday is put some money aside for your savings. This is a fine line you need to walk, don’t jeopardize your credit by missing payments.
• Direct Deposit: if your employer allows you to have multiple direct deposit accounts set one up for your savings account. You will miss the money less if you never see it to begin with in your checking account.
• Clip Coupons: If you don’t now, start. Every little bit of savings can help.
• Cut back on non-essential activities: Home cooking is always cheaper than going out, rent a movie rather than go to the theater, the rental is cheaper and so it the popcorn if you microwave it your self.
• Bring a bag lunch to work. If you go out to lunch or to a cafeteria every day that money can add up quickly.
• Quit or cut back on your vices. Quit smoking, besides being a healthy decision it is a smart financial decision. Do you like playing the power ball or those little scratch off tickets, put that little enjoyment aside until after you have the home.
• Cut back on your current bills. Can you do with out the full cable package for a couple months until you are in the new home? Can you do something to lower your other utility bills, lower the heat or air conditioning, or cut back on electricity and water use?

Pack a first night survival kit. Use one of your moving boxes and pack if full of things you may need your first night. Set this box aside or better yet put it in your car before you even go to closing.

Your Survival Kit:

• Tools: Philips and flat head screw driver, flashlight, pliers or wrench, utility scissors, straight edge razors (simple small tool kits can be bought for cheap at dollar stores, Ikea, and other general home stores)
• Home Essentials: Paper Towels, paper plates, plastic cups, plastic utensils, napkins, toilet paper, light bulb(s)
• Linens: towel(s), sheets, pillows, washcloths.
• Toiletries: soap, shampoo, toothbrush, hairbrush, toothpaste
• Misc: favorite board game, inflatable bed (or pool raft), reading material, deck or cards, not pad, pen, pencil, all purpose cleaner and sponge.
• Complete change of clothes or at least a change of underwear (remember what your mother always told you)
  

Determine how much mortgage you can afford. Start by analyzing you monthly spending. You should collect your current monthly spending data to see what portion of your income goes to necessary living expenses and what you can cut down on. Stop taking on new debt and trim your non-essential spending. Buying a big-ticket item or a new car can only hamper your dream of homeownership.

Determine how much of your income can be allocated towards housing expenses, then consult a mortgage professional or use the mortgage calculators on this or other websites to determine how much mortgage can you afford. Be realistic, when estimating housing expenses, in addition to monthly mortgage payments, do not neglect other inevitable expenses such as property tax, homeowner insurance, maintenance and the occasional home improvement costs.

It's possible you might not need all of the information above because some programs call for different documentation. Your Mortgage Broker's task of find a mortgage for you will be much easier with this documentation close at hand and could mean the difference of closing on time or not closing on time. The more efficient you are the faster your loan process will be.

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