With interest rates at near record lows, many consumers are looking to buy their first home or refinance their current mortgage. Home loans and mortgages are among the biggest financial decisions you'll make, and being prepared to choose the best options can help you save thousands over the life of your loan.
Here are several tips to make your road to the perfect home mortgage a little less bumpy:
1) Create a housing budget.
Knowing how much you're able to spend on your home puts you in a better position when shopping around for interest rates. In general, housing costs (including property taxes, utilities, maintenance and homeowners insurance) should not be more than 28 percent of your pretax income. If you can afford it, negotiate for a larger down payment or a shorter loan term to reduce overall interest costs.
2) Review your credit.
Credit is tighter these days, so use annualcreditreport.com to verify that you don't have any errors on your credit report before you apply for a mortgage. If your credit score is lower than you'd like, work on lowering your debt ratio to compensate. This number is the percentage of your income that goes toward repaying debt each month. A lower debt ratio can usually result in a lower interest rate for loans.
3) Get pre-qualified.
To improve your changes at getting a lower interest rate on your mortgage, ask Bridgeview Bank Mortgage Company to pre-qualify you first. Loan pre-qualification will boost your credibility with real estate agents and sellers because it shows you're able to get financing and are serious about buying a house. It will also make the process of applying for your mortgage faster, especially if you obtain the loan from the same company that pre-qualified you for credit. 
4) Negotiate.
Discuss the price of the loan with both the bank and the seller though my assistance. Some sellers are willing to cover various closing costs and fees, reducing the overall cost to you. This strategy is particularly helpful if you have an established relationship with the bank you're getting the mortgage from or recommended by me. They'll have a better understanding of your financial goals and be able to recommend the best mortgage product for your circumstances.
Many of these tips also apply for consumers looking to use today's low interest rates to refinance a current mortgage. Here is a short Q and A to help determine if a home mortgage refinance is right for you:
Q: What can refinancing mean for me?
A: Refinancing a loan means that you are essentially paying off your existing mortgage with a new loan. Refinancing is often used to change a loan from an adjustable- to a fixed-rate mortgage. It can also be used to lower your monthly payment or take cash out of your home’s equity.
Q: What are the benefits of refinancing?
A: Refinancing can be an attractive option if you are interested in paying off high interest rate debt, shortening the length of your mortgage repayment term, or lowering you monthly mortgage payment.
Q: When does it make sense to refinance?
A: One or more of the following conditions should be present before you consider refinancing as a mortgage option: 
- Mortgage interest rates are lower than what you have on your existing mortgage
- Your home has appreciated in market value
- You have been making payments on your existing 30-year mortgage for less than ten year
If the time is right for you to purchase a home or consider refinancing, the professionals at Bridgeview Bank Mortgage Company, LLC (BBMC) can help you maneuver the financing process – and quickly lock-in rates and terms you can afford. Visit the BBMC website for more details.
I so appreciate John Burns, Sales Manager for helping me to share the above infromation with you.
NMLS# 233090 312-506-8233 - Office 630-881-5666 - Cell 630-566-5981 - Fax
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