10 things you must know about mortgage loans

If you have decided to invest in a new house, it’s time to think of the finance. Getting a mortgage loan isn’t very hard but being aware of a few facts and aspects always helps. Here’s a list of 10 things at a glance.

1. Work with a known lender. Mortgage banks likeSun West Mortgage Company offer considerable assistance to borrowers, and you won’t need a broker.
2. Understand your budget. What can you really afford to pay? Narrow the real estate shortlist based on this.
3. Check the current debts. How many debt instalments do you pay each month? In the ideal case, this shouldn’t be more than 36% of gross income including the mortgage instalment.
4. Find your credit status. Check all the credit reports to ensure that there are no mistakes or misinformed details.
5. Pay your dues in time. Having a good record of timely payment always creates a positive image for the lender.
6. Repay small loans. If you repay and clear some of the insisting dues, your credit score will improve instantly.
7. Check if the lender needs house inspection. This can be asked for, just to know if the property value is exactly what the seller is quoting.
8. Plan the paperwork. Get bank statements and tax filings together and make a file that can be used while discussing with lenders.
9. Consider long-term goals. Mortgages usually have a term between 15 and 30 years, and if you plan to use the property for more than five years, a 30-year term is good enough.
10. Don’t sign the first deal. Just because your application has been approved doesn’t mean that this is the best deal. Shopping around doesn’t hurt and will not impact your rating.

Check online right away and find the best lenders, who can consider your mortgage application.