When you’re preparing to get a mortgage loan or meet with your agent to modify one, here are some tips when it comes to preparation.
Get your act together. This means that your paperwork should all be available. The last thing you need right now is that you’re missing something like your income tax return papers. Check with your local government offices, your bank or agent on exactly what papers are needed.
Get preapproval. Simply put, if possible, get a loan prepared before you shop around. This can also apply to modifications in the sense that you should see first if you qualify for the modification, and what options you have. Find out, too, what your options are considering how much you can put as a downpayment.
Welcome government assistance. Don’t be shy about inquiring if you qualify for Section 8 housing, Housing choice vouchers or Veterans Affairs assistance. Every single dollar saved is a dollar earned.
Choose from the menu. There are many mortgage deals to choose from:
- Fixed-rate loans may have a somewhat high interest rate, but the rate will never change over the life of the loan. You can choose from 15- to 30-year term flavors.
- ARM and option ARM loans have a low interest at the start of the loan’s term, and then the rates will adjust later depending on your terms with your agent. This is useful if you plan for mortgage modification before the rates change.
- You can also try for interest-only payments for the first few years, followed by an ARM or fixed-rate set of terms, depending on your deal with your agent.
Do remember, though, that you should be calculate your financial future up to ten years ahead before opting for ARM or interest-only options. And as always, if something isn’t clear, don’t sign on the dotted line until you are fully aware of what you’re getting into.
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