Are you looking to buy a house? Are you considering refinancing a loan you already have? Here are 10 ways you can get a great mortgage. These 10 tips will save you a boatload of money and help you get the home you really want!
10 Ways You Can Get an Amazing Mortgage: How to Pay Less and Borrow More
Ask About No-Closing Cost Mortgages
If you plan to sell your house within five years, you can save a lot of money with a no-closing cost mortgage. If you plan to stay longer, it's better to pay the costs up-front.
You Don't Need a Down Payment
Many mortgage programs - especially those backed by the government - don't require any money down. Consider these if you have steady income but little cash on hand.
Consider an FHA Loan if Your Credit Needs Work
The FHA often backs loans made to borrowers with credit scores as low as 500.
Keep Some Savings on Hand
Lenders like to see you have more than just the down payment. You're more likely to get a loan if you have extra savings.
Refinance into a 15 Year Loan
You'll usually have lower interest rates and pay less over the course of the loan. The downside: your monthly payment usually goes up.
Don't Borrow More Than You Can Afford
Buy a house within your means. Housing should be no more than 36% or your monthly expenses.
Look Into a Zero-Down VA Loan
If you qualify, you can often get a loan for no-money down. Most veterans and active duty military personnel will qualify. Sometimes spouses will as well.
Consider a Cash-Out Refi
This is when you borrow more than you owe during a refinance. You put the extra cash in your pocket.
Consider Refinancing into a VA Loan
If you qualify, you can often save a great deal on what you pay for a conventional mortgage. You can often borrow 100% of your homes value!
Be Patient With the Underwriting
Don't run up charges on your credit cards. Don't apply for new credit. You don't want your credit to change before you close on your loan. If it changes too much, the lender might decide not to loan you the money.