Knowing all you can about a real estate transaction and/or mortgage loan can really help with making smart financial moves.
Home buyer nation.com recently did an article listing over 30 tips from experts and mortgage advisors across the country. Many of them talked about the importance of understanding the situation and knowing what you’re getting yourself into.
Mike King from New American Funding had a tip about understanding fixed versus adjustable rate mortgages. He says with today’s mortgage rates at historical lows he would not recommend an adjustable rate mortgage for a first-time homebuyer, saying, “Protection is better when the rate to borrow is so low. Many may argue that first-time homebuyers will not live in the home for more than five years. If it’s about maximizing the lowest payment as the main goal, I would challenge the borrower about what price range they are in.”
If we educate and communicate with our borrowers and help them understand the product, they will be able to make better decisions on whether or not it meets their family’s goals and objectives.
Kevin Reese with Academy Mortgage Corporation wants borrowers to consider all of the costs involved. Just because you can afford a rental payment doesn’t necessarily mean you can afford a mortgage payment. You have to consider all the costs involved in obtaining a home loan such as the–down payment; home inspection; closing costs including the appraisal, title insurance and settlement fees; escrow fees; homeowners insurance and property taxes; potential homeowners dues; moving expenses; and utilities–could all be new if you’ve never purchased a home before.
We love what Jason Krist of Invis said about mortgages: “Don’t fear your mortgage, manage it. Choose to work with a mortgage broker who will provide you with a strategy that will protect you from the effects of rising interest rates and will minimize the interest you pay.” Jason talks about looking ahead. Proper planning can protect you from mortgage problems you may not realize could significantly reduce your total cost of homeownership in the future.
Finding a good mortgage broker who understands your situation and your finances can help you manage a strategy for the present and the. That’s just smart financial planning. Call us today for more information.