What Mortgage Can I Afford?

Question that that are running tirelessly in so many minds today are “what mortgage can I get and what mortgage can I afford?”  Answering to the first question is not a straight forward one. There are so many factors to be considered when it comes for buying mortgages. Many mortgage lenders are waiting to gain money using the new home buyers. So finding a reliable lender becomes an ultimate responsibility of any home buyer. You can get free mortgage advice from many comparison websites.

When it comes to mortgage one should educate them in a proper way so that you can know exactly what to look for in any mortgage broker and mortgage lender to get a best deal out of them. In fact there are so many mortgage lenders and brokers are out there who are very genuine with their profession. You need to find them through analyzing their reputation and reliability. When you are in the process of searching a mortgage lender, keep the following in your mind.

Getting a quick approval is not end of the process

Obtaining a mortgage through quick approval is a good thing. But it is not necessarily mean that you are getting a best deal.  You need to calculate monthly mortgage payment to check the affordability. You can do this by using an online monthly mortgage payment calculator. You should be determined with the following questions before you approach any mortgage lender or mortgage broker.

  • You should ask yourself these questions before you talk seriously with a mortgage lender or broker.
  • What is the tenure of the mortgage loan you want to apply for?
  • How much down payment you can make when buying the mortgage?
  • Can you prove your financial stability to your lender? Some lender requires the applicant should have work with the current employer for at least 3 years.
  • What is your present debt to income ratio? Most of the companies prefer this ration lie range 25 to 35.

Fixed rate mortgages are preferred over the Adjustable mortgages. Reason  is some lenders offer much lower interest rates at the beginning but as the time goes by they increases the interest rates drastically.

 Mortgage rates fluctuations

If you see the daily mortgage rates you can see the fluctuations on daily basis. So whatever research you want to do on the mortgage rates complete it within 2 days of span and design your budget based on that.

When doing the research, if you feel any mortgage rate seems best suit to you try to lock in that rate immediately or at least within 30 days. So that even the mortgage rate changes after that time you can stay at the same rate.

Good faith estimate

Once you submit an application for the mortgage you will receive a document called good faith estimate. You will receive this estimate within 3 days of the application submission. In this document you can see all the mortgage related fees and this fee should not get change during the processing of your mortgage. But due to the fluctuation mortgage rates are subject to change this is why you should lock with your more appealing mortgage rate within 30 days.

Now finding answer to the question “What mortgage can i afford” is not very difficult one to answer. Affordability can be calculated using the financial tools like mortgage calculators. All you need is “you should know the principle amount, number of terms, interest rates. Towards the affordability you can get free mortgage advice from the mortgage brokers and mortgage lenders.

 

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