finmagician

Tag: mortgage

Home Finances Should be Understood

Posted by admin – March 17, 2010

If you are paying off a mortgage, you have little room for error, so make sure sufficient funds are always available to pay the mortgage bill. You do not want the bank to foreclose on your most expensive investment. Have a budget for each month and leave a cushion for unexpected expenses. Also, keep a 6 month emergency fund, if one of you loses a job.

Keep in mind, if you have a fixed mortgage, that rate will not change. Usually insurance and taxes are paid together with the bill. Insurance and especially taxes go up, so your monthly bill will increase from time to time.

Purchase your items on the lowest interest rate cards available and make sure you can completely pay off the cards in a few months. Otherwise, before you know it you will be inundated by debt.

Periodically, check your home insurance rates. There might be items you are paying for that are not needed. You might also be paying too much. An example being, living near a fire hydrant should be included in items that will lower your premiums.

You can splurge occasionally, but always have money left over for home repairs. Homes tend to get costly when least expected, like a leaky roof or a broken air conditioner or heating system.

How to apply for a mortgage

Posted by admin – March 16, 2010

In this market some may think getting a mortgage will be difficult. Actually, mortgages are approved every day and this may be the best time to borrow money.

If you decide to buy a home or refinance a place you own, check with any local bank you have used previously. If you currently have a car loan or any other financing with a local lender, they will usually be happy to have your business.

Have some general information available before you make a call to ask about financing. Lenders will want the name of your employer, the amount of money you are earning, your social security number and other basic details. Your first phone call simply puts you on the path to get the financing you need. You will eventually be expected to visit the lender’s office with all the needed paperwork to start the process.

Don’t limit yourself to one lender. Be sure to call several lenders in your area, including credit unions. Smaller banks and credit unions may offer better rates and not have as many closing fees as larger banks. In most situations an application fee will be waived if you have an account with the lender.