Tiffany Pesonen's Blog
Filling out a mortgage application may prove to be a long, arduous process, particularly for those who are buying a house for the first time. Lucky for you, we're here to help you dot the I's and cross the T's on your mortgage application to ensure you can quickly and effortlessly acquire your dream house.
Now, let's take a look at three tips to help you prepare your mortgage application.
1. Be Diligent
A mortgage application may appear daunting at first. The application may include several pages of questions, and you may have only a limited amount of time to finalize your submission.
When it comes to completing a mortgage application, it generally pays to be diligent. If you answer each mortgage application question to the best of your ability, you likely will have no trouble moving forward with your home purchase.
2. Avoid Guessing
If you're uncertain about how to respond to certain mortgage application questions, there is no need to guess. Instead, search for the information that you need to provide a comprehensive response. This will help reduce the risk of encountering potential problems down the line that otherwise could slow down your home acquisition.
Remember, guessing on a mortgage application probably won't do you or your lender any favors. But if you allocate the necessary time and resources to understand mortgage application questions and provide thoughtful responses, you can minimize the risk of application errors.
3. Ask Questions
Completing a mortgage application sometimes can be tricky. Fortunately, a lender employs mortgage specialists who are happy to respond to your application concerns or questions at any time.
If you're unsure about information that is requested on a mortgage application, don't hesitate to reach out to a lender's mortgage specialists for help. These specialists possess extensive mortgage expertise and can help you complete a mortgage application.
Furthermore, mortgage specialists can offer insights into a wide array of mortgage options. These specialists can explain the differences between fixed- and adjustable-rate mortgages and enable you to select the right mortgage option based on your financial situation.
As you prepare to buy a house, you may want to consult with a real estate agent as well. In fact, with a real estate agent at your side, you can seamlessly navigate the homebuying process.
A real estate agent understands exactly what it takes to acquire a house, regardless of the finances at your disposal. This housing market professional can set up home showings, help you submit offers on houses and ensure you can purchase a residence that matches or exceeds your expectations. And if you need help getting a mortgage, a real estate agent may even be able to connect you with the top lenders in your city or town.
Ready to move forward in the homebuying journey? Use the aforementioned tips, and you can finalize a mortgage application and secure the financing that you need to acquire your ideal residence.
As happens in any industry, there are professionals who work in the real estate industry who don't mind cutting corners. Protections against working with inexperienced realtors and mortgage brokers comes through local and state realtor licensing requirements.
You may not be real estate savvy, but you deserve to be heard
The realtor licensing requirements vary from state to state, but generally mandate that realtors complete educational training and pass a state approved licensing examination. Ethical and legal issues may be covered during the training. What training seminars, study guides and tests may not give realtors are strong communication skills.
A study guide may not show realtors how to respect mortgage borrowers and house hunters. This training may fall into your lap. To be effective when dealing with realtors and mortgage brokers, you need to be confident. When you are confident while house hunting, you can increase the likelihood that you will:
- Search for houses that fit within your financial range (confidence can help you to communicate to realtors the importance of not wasting your time and only showing you houses that are below your maximum budget)
- Avoid giving into realtor or mortgage broker requests to buy houses that have amenities that you don't really want or need
- Stick to looking for houses that are located in areas that match your personal tastes
- Get the chance to buy houses that your entire family will appreciate (this means that you won't be talked into buying a house that may be great for adults but injury provoking for children)
- Steer clear of attending open houses where former pet owners lived if you don't want to live in a house that was once home to several dogs or cats
- Receive a thorough explanation of each expense associated with owning a house. For example, if you're confident, you could clearly and respectfully communicate to a realtor that you want all costs associated with a house to be level with or below your budget. In this case, expenses like your mortgage principal and interests, homeowners association fees,closing costs, broker fees, title fees and loan fees and insurances will not exceed your maximum budget.
- Work with a realtor who takes the initiatives to update you on the status of the house shopping process.
House hunter confidence yields its own rewards
Reliable and respectable realtors and mortgage brokers are honest. They value house hunters and borrowers, whether these adults are their clients or not. They research directories, conduct smart marketing for their clients and look for quality houses that match their clients' requests. Sharp realtors and mortgage brokers aren't pushy or demanding. They listen to their clients.
If they exhibit enough respect and self-confidence, smart house hunters could help to sharpen realtors and increase their chances of working with realtors who find them houses that they will afford and appreciate. They could also help realtors gain the very skills that strengthen and lengthen realtor careers, skills like active listening, focused question asking, thorough research and welcomed communication skills.
Two thirds of American homeowners are somewhere in the process of paying off a mortgage. It may seem like common sense that everyone should try to pay off their mortgage sooner rather than later. However, there are circumstances when it benefits a homeowner more to hold onto their mortgage longer.
In this article, we’ll offer some tips on paying off your mortgage, when you should refinance, and offer some tools that will help you along the long road to debt-free homeownership. If you’re a homeowner and find yourself asking these questions, read on.
I can afford to pay more each month on my mortgage, but should I?
In many cases, paying off your home as quickly as possible saves you money in the long run. A shorter loan term means less interest applied to your loan which could save you thousands of dollars in accrued interest.
What many people don’t think about is whether that money could be better spent elsewhere. If your mortgage interest rate isn’t too high, you might be better off allocating that extra income toward investments or retirement funds where they could earn you more in the long run.
This technique is typically most beneficial for younger homeowners. In your 20s and 30s you stand the most to gain from long-term investments, especially tax-benefitted retirement funds. Ultimately you’ll have to do the math, which is tricky because circumstances change; markets vary, our income goes up and down, etc. However, a good starting place is to determine whether you could earn more in retirement and investments than you could by paying off your mortgage sooner and therefore saving on interest.
I’ve owned my home for a few years now, should I refinance?
One way this can be accomplished is by refinancing to a 15-year fixed-rate mortgage which often darry slightly lower interest rates. This option is designed for people who have improved their credit and increased their income since signing their first mortgage.
Math isn’t my strong suit. How can I figure out my finances?
Use this mortgage calculator for determining how much you would save by making extra payments.
This refinance calculator will help you understand the potential benefits of refinancing your mortgage.
To determine how much you could earn through investments (rather than paying more toward your mortgage) use this helpful tool.
You might be able to increase your savings by creating a better budget for yourself. This website will help you make a detailed budget and hold yourself accountable each month.