Looking For A Mortgage?
First things first, what kind of bond are you looking for? Do you want to know what you will pay each and every month for the next 20 years? If so, you can choose a fixed interest rate and safeguard against any surprises from bond rate increases. (And lose out if the rate falls.) Do note that this is usually a higher interest than normal. When the bank rate is low, this is a good time to fix it and you never have to worry about pesky rate reviews again. If, however, the rates are at a high, it simply doesn’t make sense to lock yourself in at that level – then consider an adjustable rate. You are more susceptible to market forces with this option.
Next up is to determine what you can realistically pay on the bond every month – if these calculations include, “If we cut back here.” or scrimping and saving, rather wait a bit and save a bit of a deposit. You should never choose a repayment option that is at the very top end of what you can afford – there are various expenses that come with owning your own home and these need to be considered as well. Rather choose a longer term and aim to make extra payments as and when you can.
Be an informed consumer and know what your credit report is going to tell potential lenders. If there are adverse notes, is it possible to get them rescinded? Are you a slow payer? If so, this could have a big impact on the rate of interest you will be offered. If there are no adverse notes, do ensure that the data on there is accurate – if some accounts are paid off, it is an idea to get a letter to that effect. Visit http://www.mortgagejew.com/ for more details.
Check your personal FICO score as well while you are at it. This score is one of the most important determining factor when it comes to deciding whether or not you are credit worthy and what rate you qualify for. The higher the risk, the higher the rate. If you have a bad score, you really should postpone applying for a bond until you have worked on it.
Start off by seeing your own bankers. The advantage here is that they can see how you have handled your personal accounts and may offer a better deal because you bank with them. You should also go to a mortgage originator – they submit your app to various lenders and work on the best deal for you.
When you have several offers on the table, be sure to compare them in terms of what is most important to you.