Vinson Mortgage Group, Guide On Home Financing

Author: Darin Sewell

It seems you cannot go one day with out hearing some gloom and doom news about the slumping housing and credit market in America right now. These news reports make it seem like not one house will sell and no lenders will lend anyone money to buy a home. The fact is is that nothing could be further from the truth, even with the slumping housing market and tighter lending guidelines there has never been a better time to buy a home but you need to be aware of a few things regarding your financing before you start to shop for your first home.

Its a fact that mortgage lenders have tightened up their lending guidelines and programs, many are not even doing 100% financing anymore. To make sure you are not just spinning your wheels when you shop for a home and to avoid being let down you should talk to a mortgage lender first to make sure you are pre-approved for a loan.

When buying a home in 2008 it is a good choice to use a mortgage broker over a bank or large national lender. The reasons for this are many but the main reason is that mortgage brokers offer the most programs and are the most flexible. If one lender has a better program a mortgage broker can switch your loan to a different lender in about 15 minutes. This cannot be done with a bank or national lender, you are stuck with what they offer in house and thats it!

When you arrive at the mortgage brokers office make sure you bring you most recent pay check stubs, any bank and retirement account statements and your last 2 years taxes. This will allow the broker to accurately quote your purchasing range and keep your debt to income levels around 41% which is considered acceptable levels by most lenders. By staying at acceptable debt ratio levels your loan is less likely to be denied in underwriting.

While buying a house in 2008 will be harder it will not be impossible if you take the right steps in the beginning and get an accurate mortgage approval from a reputable mortgage broker.

Author: Mike Freemen

For most of us, the roof over our heads will be our biggest single purchase, and for most of us a home is the single most valuable asset we will ever earn. How that home purchase is financed can make all the difference in the world. Landing the right mortgage loan at the right interest rate can greatly increase the investment value of the home, while choosing the wrong mortgage loan can put your home at risk.

One of the first decisions any mortgage shopper must make is whether to choose a fixed rate mortgage or go with a variable rate interest mortgage loan. In order to really know which decision is best, of course, you would need a crystal ball to predict future interest rates. Since none of us has that particular piece of equipment, it is important to talk to several experts in the mortgage market and get their input.

The next choice mortgage shoppers must make is the length of the mortgage loan. The most common mortgage lengths are 15 years and 30 years, but there are also 20 year, 25 year and even 40 year mortgage available. The shorter the duration of the loan, of course, the higher the monthly payments will be, but the shorter duration mortgage loans will also mean you pay less for the home in the long run. It is important to carefully balance the need for an affordable monthly payment with the desire to keep the price of the mortgage reasonable.

Before any potential home buyer shops for a mortgage or a home, it is a good idea for them to carefully review their own credit report, since the information contained in the credit report will do a lot to determine the interest rate and the terms of the loan. It is a good idea to review your credit report before taking out a mortgage or other loan, since a mistake in the credit report could cause you to pay too much interest and needlessly inflate your monthly payment. If you do find a mistake in your credit report, be sure to report it to the credit reporting agency immediately and have it corrected. After your credit report is totally accurate, you will be in a better position to find the perfect mortgage at the perfect price.