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Determining the Best Mortgage
Today's mortgage market offers you many choices for
financing your home. But there is much more to the loan
process than interest rates and points. When you are
well educated in the mortgage process and your options,
and have the proper information on all aspects of financing,
you will be more comfortable in choosing the best program
for you. There are 3 main areas regarding your home
purchase that ultimately affect what loan program is
best for you:
- Your Financial Status
(Current situation and history)
(a) your assets and what amount you will be using
for down payment and closing costs
(b) your income - gross income, type and length
of employment, stability of your employment and
the likelihood that it will continue
(c) your current liabilities and monthly payments,
and your credit history. The lender's approval of
your loan is primarily based on your available assets
to purchase, and on acceptable ratios of both housing
and total debt obligations to your total income.
- Your Future Plans or Time
Horizon for your home
The plans you have for your home - how long you
plan to live in it, the likelihood that you might
be transferred or change employers; the likelihood
that you will move due to changes in your family
- a larger home for a growing family or downsizing
when the children go off on their own; the likelihood
that your income will increase substantially in
the next few years.
- Your Desires in a Home
The total price you will be paying for your home,
your desired down payment and monthly mortgage payment.
Loan Program
information
Calculators and Forms
What Can You Afford? - One
page form that you can print and complete - summarizes
the categories and ratios listed above including an
interest rate table.
As part of Personalized Home Buyer's
Manual, I also have computerized software programs
that will also analyze the various aspects discussed.
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Isabella
Scott
