2 Tips That Will Help You Secure the Best Mortgage Deal Possible
If you want to purchase a home, unless you have enough cash to purchase the home up front, you are going to need to get a home loan. A home loan is referred to as a mortgage by the banking industry. Here are two tips that will help you secure not just any loan for your future home, but a good, solid loan that will benefit you in the long run.
#1: Know Your Situation
In order to have the most power possible when shopping for a loan and negotiating for a good deal, you have to know your own financial situation. You don't want to be talking to a loan officer and be surprised about something on your credit report; you want to have the upper hand concerning your financial history when dealing with a loan officer. You don't want the loan officer to have the upper hand.
When you get your credit report, you are going to want to make sure that it is accurate. If you have any bad history on your credit report, be sure to have a detailed explanation of why you have that bad history as well as a solid paper trail that shows that you are now more than credit worthy.
Knowing this information in advance will help you keep the upper hand in any mortgage-loan negotiations.
#2: Know If You Plan on Paying Off the Loan in Advance or on Time
Next, you need to know if you plan on paying off the loan over the full term of the loan or if the long-term loan you are angling for is really just a security measure since you are going to pay for the home loan before the loan term expires. You don't have to share this information with the loan officer, but knowing that you are able to pay for the entire home in less time can change what loan terms you negotiate for.
For example, if you plan on paying the full term of the loan, it makes sense to put down more up front on the home so that you can get a lower interest rate for the long term. This will help save you more money over time. However, if you have a solid plan to pay off the home quickly or sell it in a few years, you should save yourself some cash and put down as little as possible up front and accept a higher interest rate. This high interest rate should not really affect what you pay overall for the home since you have a solid plan to pay the loan off early.
If you know you want to pay the house off early, you should also angle for a loan that will not incur you any penalties if you pay it off early. Talk to a professional such as Premium Mortgage Corp for more information about what kind of loans may be available to you.
Share
