| If you are thinking about buying a home, one of | | | | your payments with a 5 year fixed rate plan. Also |
| the first things to do is find out what price range | | | | consider financing your home with zero points. |
| you can afford. Getting pre-approved for home | | | | What debts are counted in your debt ratio? |
| financing can determine the maximum price and | | | | Monthly debt payments are added to a mortgage |
| loan amount that you can get, based on your | | | | to calculate a back-end debt ratio, including: credit |
| credit scores, income, and down payment. A | | | | card minimum payments, car loans, student loan, |
| mortgage pre-approval can save time and effort | | | | personal loan, alimony, child support, tax liens. |
| in your home search, and tells others that you | | | | Are you required to have an impound account? |
| are ready and able to buy a home. | | | | An impound account is money collected with the |
| Here's a Collection of Other Home Financing Tips: | | | | monthly loan payment to be set aside in reserve |
| Need flexibility on credit issues? | | | | to pay property taxes and insurance. It's usually |
| In addition to a low down payment, an FHA | | | | required on mortgages with less than 20% down |
| mortgage allows lower credit scores than | | | | payment. |
| conventional home financing. A bankruptcy only | | | | Buying a condo with an FHA mortgage? |
| needs to be discharged for 2 years, and 3 years | | | | A condominium project must be FHA approved in |
| on a foreclosure. | | | | order to get an FHA loan. If the project is not |
| Need payment choices for a tight budget? | | | | approved, the FHA spot loan program is designed |
| Some lenders offers flexible mortgage terms with | | | | to provide financing for an individual unit. |
| a 30 year fixed rate that gives you a payment | | | | What about opening new credit accounts? |
| choice each month for interest only or a fully | | | | Applying for a new credit card, or financing the |
| amortized payment, which could help when | | | | purchase of anything, just before or during the |
| money is tight. | | | | mortgage process can drop your credit scores, |
| Do you want an option for lower closing costs? | | | | and lower credit scores can cause a higher rate |
| If you need to reduce your closing costs, you | | | | or worse. |
| typically have the choice of decreasing the points | | | | Are you planning a job or career change? |
| by increasing the rate. Mortgage rates are priced | | | | If you plan to make a job change, especially if the |
| to allow you to buy the interest rate up or down. | | | | change involves commission or a different line of |
| How long will you keep your mortgage? | | | | work, wait until after your new mortgage has |
| If you plan to keep your mortgage for less than | | | | funded, to avoid creating a potential problem. |
| five years, you may be able to save money on | | | | |