Finding the perfect home to buy is only a part of the home purchase process. Getting a mortgage loan is the second part and it can be complicated. Not knowing the facts can cost you thousands up front and cost you far more down the stretch. With mortgage loans, if it seems to good to be true, it probably is. Do your research and don't fall for gimmicks or rates that seem to be much lower than the norm. My suggestion is to find a qualified mortgage professional in your market area. You can find them typically by asking your Real Estate agent, asking friends, etc. Ask for references and talk to them. This is serious business and you want to make sure that you get the best mortgage package available.
Most of your "money" challenge rests, not with the purchase price, but with the cost of borrowing money to buy. Saving a few thousand on the purchase price, but jumping into a mortgage without any research may mean that apparent purchase savings disappear into massive accrued interest costs.
The cost of borrowing someone else's money to buy a house or condominium can add interest and other charges that result in you paying two or three times the original purchase price after a couple of decades of ownership.
Invest "brain time" learning about how to finance the purchase and you'll get pay-back in how much less you spend on borrowing the money.
For instance, if you want to buy real estate, have you taken time to…
- Understand how to present the best possible credit rating to qualify for the best rate and terms?
- Learn which mortgage terms, including amortization period, prepayment options, frequency of interest compounding, and many more, can cost you money and how to protect yourself before you sign on the dotted line?
- Discover how and why you should repay your mortgage loan as quickly as possible and save on years of interest payments?
Once again, talk of rising interest rates has us mesmerized. Whether you are selling to buy, purchasing a new build, or entering the real estate market for the first time, mortgage rates are a topic you've been following. Unfortunately, tracking rates alone won't teach you enough about how to save and how to protect all your interests when buying a home. While borrowing rates are important, they are one of many factors to consider when arranging a loan.
The internet offers many good sources of refinancing information mixed in with sources of too much bad advice, dated content, and devious promotion. Stick to solid, reputable sources, including government agencies and consumer associations, and remain skeptical of all you hear and read. Ask a lot of questions and take notes. The "exam" is your financial wellbeing.
Our tendency to click around popular sites, which may have sometimes undisclosed agendas, can make learning about mortgages harder, not easier. Jumping from site to site, blog to blog, author to author can be confusing. Learn the basics, including terminology, before you look for slick tricks. Master the language of mortgages, so you can comfortably discuss your options with mortgage and real estate salespeople.
One great educational opportunity is to learn from the mistakes and mishaps of others. The Consumer Financial Protection Bureau (CFPB), established in 2010, describes itself as "a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives."
Make a Complaint: If you've experienced difficulties with a financial product, they want to hear from you.
They'll forward your issue to the company involved and provide you with status updates.
CFPB also provides educational support to head-off problems and explain new disclosures: Know Before You Owe.
If you are looking for a mortgage professional in the Eugene/Springfield market area, contact me. I have a list of the best mortgage professionals in our area. I can save you both time and money.
Have An Awesome Week!
THIS WEEKS HOT HOME LISTING!
4215 Heins Ct
Price: $239,900 Beds: 3 Baths: 2 Sq Ft: 1489
Beautiful Brand New Home! Another great home from builder Gary Konold. Located in cul-de-sac w/ shopping only a 2 minute drive away! One level home offers laminate wood flrs, granite counters...
View this property >>