Three Ways to Find the Best Mortgage Deal
For most people, the first of the month means the same old thing all over again — it’s time to write a check for the monthly mortgage payment. And for most people, it’s not likely to be a small check either. According to Kendrick Kapuna at Aspen Dance Realty, mortgage payments consume the majority of the household budget for most homeowners. And considering how much money is at stake, it becomes even more important to locate the best mortgage deal that you possibly can. Here are some smart strategies that can be used in your mortgage search.
Enlist the Services of a Mortgage Broker
What is a mortgage broker? The broker is not the one lending you money. He or she is the individual who helps you organize and prepare your loan application, and then submits it to the lending institutions that are best matched to your financial situation. Mortgage brokers are very tuned in to the current mortgage market, so they are very helpful in determining which lenders are right for you and which ones might be able to offer you the best deal.
Examine All the Details
In order to reach the best decision concerning which loan is the best, you need to look beyond the interest rate and payment amounts and examine all the details of each quote. This is necessary in order to compare them fairly. You also need to make sure that the loan parameters are the same. For example, you should not compare a 30 year term loan to a 20 year term, or a fixed-rate loan to a variable rate.
Get a Rate Lock-In
Once the hardest part of the loan application process is behind you, and you’ve been offered a mortgage deal that you are satisfied with, the last step to take is to lock in the interest rate. An interest rate lock offers protection from interest rate fluctuations that can affect your rate during the remaining time of the application process.
Can You Get A Mortgage After Bankruptcy?
It is common knowledge that claiming bankruptcy has a very negative effect on your credit rating making it difficult to qualify for loans or rent accommodation, but the question is “Can you get a mortgage after bankruptcy?” Yes!
It is certainly easier to qualify for a mortgage if you wait at least two years after your bankruptcy has been finalized and your debts discharged. This is so that your credit rating has had a chance to recover, thereby showing lenders that you are not such as risk. However, if you are in a rush you can get a mortgage after going bankrupt by following these simple steps:
• Raise your credit score – Immediately after discharge you should work on increasing your credit rating by qualifying for credit card and small loans then being diligent about paying them off.
• Organize your finances – Use the skills learned in the mandatory financial education course to organize all your financial documents so you have a good idea of what you will be able to comfortably afford.
• Shop around – Research different loan programs and rates online and in-person. Get at least 3 or 4 quotes and once you have chosen make sure you read the fine print very carefully.
Mortgage approval is based on three core aspects: good credit, income verification, and a down-payment. If you have a steady income from secure employment but you have recently been bankruptcy, you will have to weigh the balance in your favor by putting down a larger down-payment. As this can be as much as 20%, you may have to cash in any investments remaining after the finalization of your bankruptcy or approach family and friends for the down-payment. There are also numerous bankruptcy loan programs or down-payment assistance programs available in the U.S. to help those financial need raise the money necessary to buy property.
Although it may be more difficult and more costly, you can get a mortgage after bankruptcy.
