You must be careful when making a decision as important as getting a mortgage. If you do it with the wrong information, dreadful consequences can result. If you are currently going through the motions of the loan process and have any doubts about your understanding of how it all works, then it may interest you to read on.
There are new rules that state you might be able to get a new mortgage, and this applies even though you might owe more on your home that what it is worth. Prior to the new program rules, homeowners would apply and get denied for a new mortgage. Check it out and see if it can help you.
If you want a good mortgage, you should have an excellent work history. A majority of lenders will require two years of solid work history in order to approve any loan. Changing jobs frequently can lead to mortgage denials. Also, avoid quitting from any job during the application process.
When waiting to get word of approval, try not to incur additional debt. Your credit score and reports are likely to get checked again in the final few days before finalization, and if there’s a spike in new activity, the lender might change their mind. Hold off on buying furniture or other things for the new home until you are well beyond closing.
Make extra monthly payments if you can with a 30 year term mortgage. The additional payment is going to go towards the principal you’re working with. This will help you pay your loan even faster and reduce your total interest amount.
Balloon mortgages are often easier to obtain. This is a shorter term loan, and one that requires it to be refinanced after the expiration of the loan term. This is a risk if rates increase or your finances change in the process.
If you’re having difficulties obtaining a loan from your credit union or a bank, you should contact a mortgage broker. A broker might be able to help you find something that fits your circumstances. They work directly with the lenders and may be able to help.
Remain honest through the whole loan process. If you put anything that isn’t the truth, it could get your loan denied. If you are dishonest, a lender will not trust you with its money.
Now that you’ve finished reading, you’re ready to start the process. Use what you learned here and it can help you along the way. Once you do, your mortgage will be forthcoming.