Home Mortgage Refinancing

Home Mortgage Refinancing

You can also save money by refinancing the home mortgage you already have.  You want to minimize your expense over the life of the loan or to minimize your monthly payment in the near future.  It make sense to refinance your loan if interest rate are lower now than it is at the time you took out your original loan.  It likes getting one loan to pay off another one except you save money by taking out a new loan because you are paying less in interest.  To take advantage of a lower rate you will have to close on a new loan and pay the closing costs associated with the loan which is there even if you opt for a no cash or low cash closing.  If you have enough equity in your home you may even have the benefit of being able to stop paying Private Mortgage Insurance.

Pre-qualifications and pre-approvals

Pre-qualifications and pre-approvals

Pre-qualifications and pre-approvals are your weapons against not being able to find a mortgage after you have found the new house of your dreams.  It provides you with an edge because you may have already obtained some sort of financial agreement with your bank or mortgage broker.  Having these things can put you in a stronger negotiating position when you are ready to purchase a house.

A pre-qualification is an informal agreement between you and your lender.  A background check will not be done at this point because the bank will give you an opinion or what they will lend you based on your own personal opinion.  The bank relies solely on the accuracy of the picture you portray of yourself since there is no background check.  There is no charge involved in this process and you are under no obligation to take out a mortgage.  It’s great because you can hunt for a mortgage with a better deal or lower interest rate while you have a pre-qualification.

A pre-approval for a mortgage is more serious than a pre-qualification.  The bank will check your credit history, employment information, assets, and liabilities in order to pre-approve you for a mortgage.  Getting a pre-approval is really getting the same thing as a mortgage except you can get pre-approve for the loan before you actually look for a house.  A pre-approval can really give you more negotiating power because its means the bank is already willing to lend you an exact amount of money.  This way you don’t have to be worries about the bank turning you down for a loan.  Some lenders charge for a pre-approval so make sure you are really going to buy a house soon or you will be wasting your money getting a pre-approved mortgage.

Home Mortgages

Home Mortgages

Interested in buying your own house?  There are a lot of things to consider when it comes to buying a new home.  I am not talking about the color you want to paint your walls.  A house is a big purchase.  It’s nothing like going to your local store to buy a gallon of milk.  For one thing a gallon of milk is about two dollars where a house generally is two hundred thousand dollars.  You pay for your gallon of milk and you take it and drink it, the gallon of milk is yours.  When is the last time you saw someone pay two hundred thousand dollars in one shot?

How are you going to get a six-digit figure to purchase a house?  No one is going to sell you a house if you can’t pay him or her all at once.  You have to borrow the money from the bank to pay the original homeowners.  Most people spend a quarter of their life just to pay the loan they took to purchase a house and that is only half the problem.  The other half of the problem is having the bank approved your huge loan to buy a house.  The bank is not just going to give a loan to anybody who wants to buy a house.  The bank is going give you the third degree on your income and your savings and inspect your past credit history.  This is all to determine is you are trustworthy enough for them to lend you money because banks are afraid that you won’t be able to pay them back.

The best thing to do when buying a house is do your research before you even go look at houses.  Before you borrow money from the bank, learn about the things that are involved in the mortgaging process.  It is always best to consult a professional about the financing process and the legal processes that is tied into buying a house.  The internet makes it a lot easier to do such research and the internet has provided us a fast and easy to get home mortgage approvals and refinancing online that within a mouse click away.

Home Equity Loan

Home Equity Loan

A home equity credit line might be a good option for you if you have a home and are looking for some extra cash for college tuition or home improvement, or just to pay off credit card debt.  The interest on home equity loans varies based on your credit history, how many payments remain on your current mortgage and many other factors, but they generally much lower then credit card interest rates which can be as high as 25% APR.  The interest on a home equity credit line can be tax deductible which makes this a very appealing option for many home owners.  Keep in the mind that if you miss a payment your home is your collateral and you can lose it.  Find out more about home equity loans at E-Loan.com

Credit Reports

Credit Reports

Before you apply for ANY loan, you should know your credit standing.  It is one of the most important factors in a loan application, and to many people its a mystery as to what their credit standing is.

Your creditors report to three different bureaus as to your credit standing, they may report to all three or just one.  So in order to gain a good picture of your credit standing order a Online 3-in-1 Credit Report, which includes all three bureaus.  This will give you leverage in choosing which loan you actually qualify for.