5 Secrets to Mortgage Success

5 Secrets to Mortgage Success

There are 5 rules of thumb that all prospective buyers should take into account when shopping around for a new home. These tips can help you obtain a mortgage with less hassle and at a lower cost.

1. First, 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.

2. Then, 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.

3. You need to gather your 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.

4. It is imperative that you 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!

5. Remember that there are options, maybe considering a shorter loan term is a better financial decision for you. 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!

If you follow these rules, it will help you on the road to making your mortgage experience easier and less costly. You should learn all you can before applying for a loan!

Article Source: David Chapman

For more information on Somerset Mortgage Lenders check out their website: http://www.somersetmortgagelenders.com

About Somerset Mortgage Lenders:
With their main offices in the heart of Long Island, located at 290 Broadhollow Rd Suite 310 E in Melville, NY 11746, Somerset Mortgage Lenders have been in the mortgage business for 30 years. In Somerset, you have a mortgage banking firm that prides itself on attaining the highest ethical and moral standards and is dedicated to providing quality mortgage products at value pricing to our customer. Somerset has a long-standing history of servicing its local community as a reliable mortgage company. Our goal is to establish a successful partnership with our customers, staff, investors, and markets that respect the interest and goals of each party. Somerset Investors Corp. has been built on the belief that to be successful in mortgage banking it must first begin by molding itself as a customer service firm that provides quality service to the public.

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