Before You Mortgage

Looking to purchase a home? Make sure you know what you're getting into before pledging to pay hundreds of thousands of dollars. When searching for a lender and arranging your mortgage, the best piece of advice I can give you is to BE INFORMED.

Here are some other hints to ensure you get what you are paying for when acquiring a mortgage.

1. First Step a?" Pre-approval. You should be pre-approved (not "pre-qualified") for your loan before you start shopping for a house. Not only will this help you refine your search to a particular price range, but it will give you the confidence to know what you are financially capable of doing.

2. Figure out the type of mortgage that will work best for your current and forecasted situation. Know the market, where interest rates are headed, and where home prices are going. Take this information into account to determine how much you can afford to pay for your home.

3. Know your type of mortgage. In an assumable mortgage you can hand it over to a buyer if you choose to sell your home before it's paid off. This is a good feature to have and very desirable to an interested buyer. A portable mortgage is one that you take with you if you buy a new home and you will avoid paying any discharge penalties. You will have to obtain a new mortgage next time, unless you are making a move to a more expensive home.

4. Determine a comfortable dollar amount that you can pay each month. When you get pre-approved, your lender will verify the amount for which you qualify. Before that, have a reasonable dollar amount so you dona?Tt waste time.

5. Know your options. Many mortgages come with the option to pay weekly, or even biweekly. If you can arrange your payments so that they are due more frequently, it will significantly reduce the length of your mortgage.

As a real estate professional, I am trained to find the best home and payment plan for my customers. If you need help sorting through mortgage details, feel free to call me at (207) 784-2525 or visit my website at http://www.meservier.com/.