Improve your credit score. Buying a house could be the best investment you can have in your lifetime. That is why before you buy one, you must carefully assess your personal credit status that will definitely affect how much you will pay to your lender. Banks and mortgage companies check your credit score to know if you are not a credit risk to them. And the better your credit is, the lesser interest rate they will give. Thus before applying for a house mortgage, try to improve your credit score first (unless you are applying for bad credit mortgage loan). Improving your credit rating however is not an overnight process. So don’t be desperate enough to believe on online ads offering you a chance to improve your credit score instantly. What you should do is to pay your bills on time, all the time.
Save on down payment and target a shorter term mortgage. You can certainly get a lower interest when you buy a house at 50% down payment instead of 0% down. This is because you owe your lender less and the less you owe means the less interest you pay. Making sure that you pay as much as you can for down payment will definitely give you tremendous savings in the future. Savings can also come with the term you choose. If you think you can afford a 15-year mortgage instead of a 30-year, go for it! Shorter loans have lower interest rate as compared to longer loan.
Attend house auctions. Auctions are always a great venue to buy affordable property. Ask your bank about this option.
Strive to become pre-approved and not just pre-qualified. Getting in a pre-approved status will set you in a position where you can bargain your terms with home seller better. Home sellers are more willing to ask more when there in no ‘upon approval’ clause since they are assured of the sale.
Use mortgage calculator. Mortgage calculator will give you information about your mortgage including the monthly fee. This will help you realize if you can really afford a house or not.
Do not rush. Although there maybe other buyers aside from you, do not always believe when the broker tells you that “you should buy the house NOW because the market is hot and tomorrow it might already be sold to other buyer.” This or similar line to this is always used by brokers to convince you to buy the house immediately or else it will be sold to another costumer. The truth is, although there several home buyers out there, few will take interest on the particular house you want to buy. Remember this: if the house is on sale for more than a month, there is no reason to believe what your broker has said. Take time to assess if you can afford or like the house. Do not say “yes” immediately. Go home and think it over. Discuss it with your wife or husband.
Know how to negotiation. Future homeowners often believe that the brokers have fixed rate so they don’t even bother to ask for discounts or request for other payment options. You on the other hand should assert this chance.
Don’t forget to ask questions. You can negotiate for a better price well if you know your broker is talking about. Ask questions about the added cost, the interest rate, and other factors that can change the amount you will pay for the mortgage. Then, ask for the possibility of adjusting some of these individual fees to make the purchase more affordable.
Finally, pay in advance. If you have already purchased a house and started paying to your creditors, make prepayments. This will help you lower the amount of money you pay for the interest. Again: the less you owe, the less interest you pay. A good history of advance payment will help you negotiate with your lenders a better payment options in the future.
For more information on mortgage and home financing please go to:
http://www.homefinancingalert.com/Financing-Home-Tennessee.html
http://www.homefinancingalert.com
http://www.drnathaliefiset.com
http://ezinearticles.com/?House-Mortgage--How-to-Save&id=628519
