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Thursday, March 25, 2010

Allen Mortgage Tips for First Time Buyers

Are you going to buy an Allen home for the first time? Aren’t you sure whether fixed rate or variable rate will be your right choice? Do you need to understand the true cost of borrowing? If you are confused about these factors you need some mortgage tips. Here are a few invaluable mortgage tips that can help you when it comes to Allen home buying. These tips are critical for any home buyer.

Go for Bigger Down Payment: The bigger the down payment is the better it is for you. If you choose lower down payment you will have to pay more on monthly basis. For example if you make 5% down payment you will have to pay more for mortgage insurance and the interest rates will be also very high. With lower down payment mortgage lenders won’t show much interest in your case. They like to see at least 10% – 20% down payment. If you make at least 20% down payment you can really save a good deal of money in the long run.

Save Money with Good Credit: If your credit history is bad it will be difficult for you to secure mortgage. Wait for a few years if your credit is poor. Build your credit back up first and then apply for a mortgage. You can save a lot of money over the life of the loan.

Closing Cost: Each and every mortgage has some kind of hidden costs including legal costs, home inspection cost, bank’s closing cost etc. Before you sign a mortgage document remember to check all the hidden costs. After all you don’t want to discover that you need to pay $5000 more on the closing day.

Get Pre-approved Mortgage: Getting pre-approved mortgage is quite difficult but securing it will help to get rid of unnecessary headaches. You can always apply to the banks for potential mortgage. The bank can grant it up to a certain amount. It will give you a clear idea about your budget. In fact home sellers will consider you to be a serious buyer if you can secure pre-approved mortgage. If you can’t manage it alone you can hire an Allen Mortgage attorney who can help you to secure the mortgage.

Go For a Reputable Lender: These days many banks and other financial companies offer mortgage for little interest rate. You shouldn’t jump to accept the first offer you get. Compare different interest rates and other terms and conditions to make sure that the lender you choose is reputable and that you won’t have any problem in future.

If you are not confident to handle all these issues yourself take help from an Allen Mortgage attorney.


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