7 Things to Know Before Applying a Mortgage

1094183 global financial crisis concept 7 Things to Know Before Applying a MortgageThere are times when mortgage rates are low and reasonable enough to apply for a mortgage whether it is for a house or a new car.  If you are considering on applying one, don’t be shy asking for detailed information regarding the mortgage rates and conditions.

It would be wise to have a checklist prepared on what to ask your mortgage provider.  Here are 7 important things you must have information on.

How much time is needed to process a loan?
There are certain times when there is a surge in applications and may take longer to process your loan.  A good loan officer will have data on how long it would take for your loan to close.  This information is important so that you could decide when you are going to opt in at that rate.

How much is the minimum down payment?
Each provider has their own terms, however you will find that most will ask for 20% of the amount to close the deal.  There may be other providers that will allow you to shell out less than 20%.

How much will I pay each month?

What are the costs you would need to pay every month?  Does the fee include property taxes or insurance?  There are some providers that will waive the fees.  You need to know the exact figure on what you are going to pay each month after all the fees have been accounted for so that you would know if it fits within your budget.

Is there a charge for pre-payments?
You may have some extra cash suddenly and plan to finish off your loan at an earlier date.  Take note if your loan has a early pay-off penalty or not.  You wouldn’t want to incur any more fees.

Total closing costs
Aside from your mortgage, you also need to shoulder closing costs.  This fee usually consist of the application fee, processing fees for appraisals, surveys, credit reports, title insurance, underwriting ,attorneys and home inspections.  Your provider should be able to give you a close figure or estimate to all the fees involved.  You should ask for this information.

Is the interest rate adjustable or fixed?

With interest rates, it is best if you get a fixed rate so that the monthly payments would be more or less fixed as well.  You wouldn’t want a sudden increase on your payments terms.  If you opt for an adjustable rate, it can be quite unstable and keep changing.  Get to know the annual percentage rate or APR which tells you the total amount your lender would require from you on the entire loan.
Will I be able to lock in the interest rate?

There are mortgage lenders that will give you an option to lock in the interest rate for thirty to sixty days.  This will help you if you assume that the rates will be going up.  However, there are a few lenders that allow this option for a certain fee.
Knowing this important facts before getting a mortgage will help you make the right decision in choosing a provider.  You, as a customer have a right to know every detail of your loan so do not be afraid to ask.

Get the best mortgage tips at FinanceBroker.com

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How to Choose the Right Car Insurance

Do you notice that most people stick with their car insurer for the long term?  Is it always because the company always provides the best rates and insurance terms?  You would be surprised that most of them do not really want to go through the hassle of trying out new processes other companies may offer.

Nowadays, we may find ourselves bombarded with so many companies advertising about their insurance policies and why you should choose them.  With all the rates and conditions they promise, how do you know which insurance policy is best for your budget?

Here are simple ways to compare car insurances and get the best one for you.  It all begins with knowing who the companies so that you can apply for the best rate for you.

Who are the car insurers?

489144 alarm positron 1 How to Choose the Right Car Insurance

One of the easiest ways to categorize these insurance companies is by their marketing efforts and company size.

  • Sales agents – There are companies that have chosen people to sell policies as agents.  The agents meet with the customer personally or call them up over the phone.  You can be assured of a good and personalized service at reasonable rates.
  • Company hotline – Companies that use a hotline sell to their customers directly through the use of marketing or advertising.  Insurance policies are applied over the phone as there are no direct agents that go door to door just to look for new policy sign ups.  The company mainly relies on their customers to contact their call centers or apply online.  The service may not be as personalized as direct sales agent however you can be assured that you are getting your policy directly from the company with no false information.
  • Freelance agents – These sales agents offer different insurances from different companies.  Their expertise lies on finding the best rates and offering the information to customers for a fee.  They can also be consultants and offer solutions on how to overcome problems in getting approved for insurance.

Which one is the best car insurance?

A good insurer will have a good grasp of the whole picture before they create a policy for you.  They will check your driving and credit history.  To get a good rate, it is advisable to retain your good driving record.  Most insurers analyze these factors before they calculate the rate they give to you.

Applying for an insurance policy can be a daunting task.  But with good research and spending time on these matters will save you some money while your policy runs.

Get the best car insurance tips at Financebroker.com

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4 Tips on Mortgage Refinancing

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There are things to consider when you are looking for a mortgage refinance.  Having the information you need to know will prevent you from neglecting to see the other details that could cause some problems later on.
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5 Ways to Deal With Credit Card Rate Spikes

August 23, 2010
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You may have noticed that credit card companies are pushing their interest rates up.  Even though you have a good credit standing and pay your bills punctually, you may not be spared from the increase in interest rates.
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Credit Cards and Debit Cards – Which One Should You Get?

August 23, 2010
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Times have changed.  It is so common to encounter news about the economy being unstable.  Economy crisis, real estate prices falling, businesses filing for bankruptcy, and many people going jobless.  Now, more have adapted to manage their money wisely, buying only when it is necessary and staying out of debt.
However, during these times, the debts [...]

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