Before delving into the intricacies in securing a mortgage loan, you need to learn first a few terms relative to home mortgage loan. The services of a mortgage broker are indispensable when it comes to home loans. Mortgage brokers act as a go-between the seller and buyer or the lender and the borrower. A mortgage broker mainly works for the lender; he also attends to the needs of the borrower by the assessing and processing the mortgage application.
The following tips are surely helpful in securing better terms for a loan application.
1. WAIT FOR LOW INTEREST RATES AND LOCK IN. Securing a home loan mortgage is just the same as borrowing money in which the lower the interest rates offered the better. More often than not, however, when the borrowing rates go down, the price of housing units goes up. If you are able to obtain a loan with low interest rate, you need to lock in the rate to secure what has been quoted beforehand.
2. GOOD CREDIT SCORE. As a prerequisite to every loan application, lenders conduct a thorough financial background check. Thus, prior to your home loan application, you must have a credit score with flying colors. At any rate, a good credit score must be very appealing. If you have a dependable credit score, you'll like secure early approval in your application.
3. BIG INITIAL DOWNPAYMENT. In home loan mortgage extension, a big down payment means more loan equity. Once your loan equity is huge, the lender might offer you better interest rates in your monthly amortization. This is the reason why most mortgage brokers always encourage home loan applicants to give a sizeable down payment.
4. PRE-QUALIFICATION & PRE-APPROVAL. On one hand, pre-qualification means that the mortgagee or the lender will provide an estimated maximum loan amount based on the voluntary information submitted by the mortgagor or the borrower. On the other hand, pre-approval means that after the approval of the amount of loan, the lender conducts financial background checks and income verification. It seems that both are indispensable in loan application.
5. LOOK FOR BEST LENDERS. Home mortgage loan rates differ from one lender to another. Shop for lenders who can offer you a better deal in home loan mortgage extension. Don't limit your options to just one, two, or three lenders. In every lending option, carefully weigh the pros and cons.
In sum, in determining whether you have secured a better home mortgage loan deal or not, you have to do the math. You should also take a closer look on the interest rates, prioritize your debt, and always strive to have a good credit score. Over and above, be truthful to your home mortgage loan application for it can make or break your chances.
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Article Added on Tuesday, June 17, 2014
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