Get PREAPPROVED

Although the following information may be reliable, borrowers should verify the following information before making a lending decision.  With that said, what I am saying is do your research.  Ask as many questions as you can to help find your comfort level.  A reputable Licensed Mortgage Broker is required by law to answer any and all your questions to satisfied understanding.  The purchase or refinance of your home is one of the biggest financial decisions you will ever make.  Purchasing or refinancing a house you can continue to afford on an ongoing basis.  Remodeling is a smart business choice, but remodel with caution as not to over improve your home outside the local housing appraised neighbor value market.  In other words be cautious of over improvements that will not get you a fair appraised value in the neighborhood you will be living in.  You must consider your income, debts owed and your current credit score before figuring out the maximum loan amount your should consider borrowing.  With a purchase or a refinance it is best to be "Preapproved".  This meaning navigating through the mortgage loan application obtaining a Good Faith Estimate prior to looking for that dream home or planning the dream remodel.  A Good Faith Estimate informs you of all the charges that you will incur and givie you a proposed monthly payment.  Now it will be your time to evaluate your financial limits.  Being "Preapproved" when purchasing makes you are more desirable to Realtors and sellers.  A seller may even want to at that time contribute to the closing costs on your behalf to sell their property meaning you will have less cost to you at the closing table.  Once you have been through the process of securing a loan option that best fits your financial limits, it will be time to lock your rate.  In today's market lender interest rates can adjust one to three times a day.  If you suspect interest rates will rise before you close, locking you rate would be a preferred option.  Thinking that the rate you were quoted may decrease can be a gamble on your part, but may save a considerable amount in the end.  Locking of the interest rate usually must happen at least 15 days before closing.  Refinancing your current mortgage you might consider locking 5 days before your scheduled closing.  Again this may end up raising or lowering your interest rate, but the decision is yours to make.  As for lending products out there, there are many that are offered.  It is your financial decision to best fit the terms and interest rate that best fits your spending plan.  Using a Licensed Mortgage Broker may be to your advantage.  The Licensed Broker, unlike the Banks Loan Officer, works for you the borrower and must have your best interest in mind.  A bank's Loan Officer is an employer of the lender; a Licensed Mortgage Broker is your employee.  Visit our website WWW.VALLARINC.COM for more helpful information.  Do your research and ask as many questions as you can to make your financial decision in your best interest.  Most of all ENJOY your home.