Here are 8 financing tips:
- Don't Stretch Your Loan Qualification Limits to Buy a Home Beyond Your Budget
Living poor just to own a bigger or better home, makes for larger mortgage payments and risks difficulties in the future.
- Get a Written Confirmation of Your Locked-In Interest Rate and Interest Rate Terms
- Understand All the Conditions of Your Loan
You or a professional that you trust should thoroughly scrutinize each document.
- Understand the Unique Terms of Your Loan
There are many types of mortgage loans out there. Make sure you understand the details of your particular type of loan.
- Pick the Right Kind of Loan
Rates are higher on 30 year loans than on comparable 15 year loans. That's because there is a greater risk that rates will go up the longer the lender commits to a fixed rate.
- If You're Buying Rather Than Refinancing, Consider Getting a Pre-approved Mortgage or Contingent Loan Approval Letter
The former is a binding commitment for a loan up to a certain amount. It can strengthen your negotiating position with the seller, but it puts pressure on you to close a deal before the loan commitment expires.
- Save Everything
Keep copies of everything you send the lender and everything the lender sends you.
- Take Advantage of the Deduction
The mortgage interest deduction is one of the few remaining tax deductible interest payments, and it's also the cheapest form of long term financing.