Frequently asked questions about home loans - mortgage DTN - All types of home loans

Plan ahead.
Make good credit and save as much as possible for Issue costs.
Get pre-approved online before you start looking.
Agents not only work with pre-qualified buyers prefer to have more bargaining power and an advantage over buyers of homes, not previously approved.
Set a budget and stick to it.
Do you know what you really want in a house.
How long will you live there? Is your family growing? What are the schools like? How long is your commute? Consider every angle before diving in.
Make a reasonable offer.
To determine a fair value on the home, ask your real estate agent for a comparative market analysis listing all the sales prices of other houses in the neighborhood.
Choose your loan (and your lender) carefully.
For some tips, see the question in this section about comparing loans.
Consult with your lender before the payment of debts.
You may qualify even with your existing debt, especially if it frees up more cash for a down payment.
Keep your job.
If there is a career move in your future, make the move after your loan is approved.
Lenders tend to favor a stable employment history.
Do not shift money around.
A lender needs to verify all sources of funding.
By leaving everything where it is, the process is a lot easier on everyone involved.
Not add to your debt.
If you increase your debt by financing a new car, boat, furniture or other large purchase, it could prevent you from qualifying.
Timing is everything.
If you already own a home, you may need to sell your current home to qualify for a new one.
If you are renting, simply time to move to the end of the lease.


How Much House Can I Afford? How much house you can afford depends on how much cash you can put down and how much a creditor will lend you.
There are two rules of thumb: you can not afford a house up to 2 1 / 2 times your annual gross income.


Your monthly payments (principal and interest) should be 1/4 of your gross pay, or 1/3 of your take-home pay.
L down payment and closing costs - how much money do you need? In general, the more money you put, the lower the mortgage.
You can put as little as 3% down, depending on the loan, but you'll have a higher interest rate.
Not less than 20% will require you Private Mortgage Insurance (PMI) protects the lender if you do not pay the payments.
Also, expect to pay 3% to 6% of the loan amount in closing costs.
These are fees required to close the loan, including points, insurance, inspections and title rights.
To save on closing costs you may ask the seller to pay some of them, in which case the lender simply adds that amount to the price of the house and you finance them with the mortgage.
A creditor may request that the mortgage payment 2 months savings apply for the loan.
The mortgage - how much can you borrow? A lender will look at your income and your existing debt when evaluating your loan application.
They use two ratios as guidelines: Housing Expense Ratio.
Your monthly PITI payment (Principal, Interest, Taxes and Insurance) should not exceed 28% of your monthly gross income.
Debt / income.
Your long-term debt (any debt that will take over 10 months to pay off - mortgages, car loans, student loans, alimony, child support, credit cards) shouldn't exceed 36% of your monthly gross income.
Lenders are not rigid, but.
These are just guidelines.
If you can make a large down payment, or if you are already paying the rent, which can close to the same amount of a proposed loan, the lender to bend a little .
Use our calculator to see how you fit into these guidelines and to find out how much home you can afford.
Why should I refinance? If you have a low rate 30 years fixed rate was in good shape.
But if any of these Five Reasons applies to your situation, you may want to look into refinancing.
1.
Decrease monthly payments.
If you have a fixed interest rate can be lower than what you currently have, you can reduce your monthly payments.


2.
Getting money from your assets.
If you have enough equity you can get cash out by refinancing.
simply decide what to extract and increase the new loan by that amount will.
It's one way to release money for major expenditures like home improvements and college tuition.
3.
Switch from an adjustable to a fixed rate.
If interest rates rise, and if you want the security of a fixed interest rate or if interest rates lower than the current value that you can refinance your adjustable loan at a fixed price is looking like.


4.
Consolidate debt.
You can refinance your mortgage to pay off debt, too.
Simply increase the new loan amount by the required amount el institution that will give the money paid to creditors.
You'll still owe the lender but at a much lower interest rate - and that interest is tax-deductible.
5.
Pay off your mortgage sooner.
If you switch to a shorter period or a bi-weekly payment plan, you can pay for your first home and save interest.
And if your current interest rate is higher than the new rate, the difference in monthly payments may not be as big as you'd expect.
The refinancing is worth it? Refinancing costs money.
Like buying a new home, there are points and fees to consider.
It usually takes at least three years to the cost of refinancing your loan, so if you want to draw to stay for a long time is not worth the money.
But if your interest rate is high it may be smart to refinance to a lower interest rate, even if it is for the short term.
If the loan has a prepayment penalty, this is another cost incurred if you will refinance.


Use the reasons above as a guideline and determine whether or not refinancing is the right thing to do.
You can also choose our refinancing calculator to analysis to.


What Are the Costs of Refinancing? Here's what you can expect to pay when you refinance:

The 3-6 Percent Rule Plan to pay between 3% and 6% of the amount of the new loan amount (if want cash-out, the loan amount will be larger).
Yet some lenders offer no-cost refinancing in exchange for a higher rate.


Getting to the Points Points play a big part in how much it'll cost to refinance - the more points you pay, the lower your interest rate.
The points are a good idea if you want to stay at home for a while , but you will soon, you should try not to pay and points total.


Negotiate the Fees Be aggressive and investigate the fees your lender is asking you to pay.
You may not need to evaluate or your loan-to-value may be that you no longer need Private Mortgage Insurance.
Sometimes if you refinance with your current lender they won't need a credit report.
With a little research is amazing how much you can save.


Here, we've explained the different loan refinancing fees.
Fee: This covers the initial costs of processing your loan request and checking your credit.