Mortgage Tips from Me to You

At some point in your adult life, you are likely to purchase a house of your own. Whether you are sick of renting, or you have decided to settle down and start a family, purchasing your first home can be an exhilarating and nerve-wracking adventure. In researching the best practices for new home buying, we decided to give you three of the most important tips.

Our first suggestion is to save, save, and save some more. The idea behind this is to enable you to make the largest initial down payment on your new home as possible. We know how difficult it can be to save, but this could save you thousands of dollars in the long run. Wouldn’t it be great to be able to save thousands of dollars to use for your own ends, instead of paying it to some faceless bank in interest payments?

Secondly, try to educate yourself about the types of financing available. Shop around, or speak with a mortgage broker who can act on your behalf. In my opinion, your best bet is to lock into a fixed rate mortgage. A new home is very expensive, and you are likely to be short of cash for the first couple years. A fixed rate mortgage will provide you with the peace of mind that comes with knowing exactly what your mortgage payments will be each month. Remember, you can always renegotiate the terms of your mortgage at a later date. Ensure you have the stability you need to get off on the right start.

Lastly, be sure you have a proper home inspection done before you complete the transaction. If you feel the price of the house you are about to purchase is too good to pass up, it is probably is too good to be true. It is worth taking the time to ensure things are done properly. If you have to move fast for fear of missing out, make an offer, but ensure that your offer is conditional on upon a successful home inspection. Far too many first time home buyers have gone broke fixing repairs that should have taken care of by the previous owner. And, please, do yourself a favor and find an independent home inspector that doesn’t have a relationship with the real estate agent!

Seymore Hennigan has worked in finance for many years. When he is not crunching numbers or advising his family and friends on investments, he writes freelance articles for mortgageguide101.com – an independent mortgage guide filled with extensive information about Saxon Mortgage, second mortgages, mortgages and more.

Home A Loan
Demand for secured loans declines as house market slows down, as well bankruptcies and home repossessions rising

More...

Credit after Bankruptcy is not Impossible

If you are going to file for bankruptcy, it is true that you will not have very good credit after bankruptcy.
2005-10-17

Borrowers opt for fixed mortgages

Half of all mortgages taken out in July were fixed-rate deals, as the average price of these loans fell for the ninth consecutive month, figures showed today, but lending was down on the previous month.
2005-08-23

Good Debt Vs Bad Debt

Debt has been a part of every body’s life and personal debt gradient is on the rise because credit hasn’t been easier to receive.
2005-10-17