Home Loan Brokers

Searching for home loan brokers can be daunting. The average consumer has no idea what questions to ask in regard to the purchase or financing of their dream home. Home loan brokers are equipped to inform and guide the consumer through the arduous home finance process. We have obtained the following steps as a resource for prospective homebuyers.

The mortgage finance industry has been challenged over the past couple of years to say the least. Those mortgage brokers who have managed to not only “stay alive” but thrive through the challenges are customer service driven individuals. Additionally, they provide road maps for their customers. In an interview with a successful loan officer we have been able to find a few steps (that they provide for their customers) that make them successful.

1. Find the amount that you can afford to borrow. The monthly payment on your first mortgage will be only part of your monthly housing expense. You’ll also have to pay property taxes, homeowners insurance, and repair and maintenance costs. Make a budget and stick to a mortgage payment that you can afford. New home calculator and mortgage payment calculators can help you estimate the payment and come up with a maximum loan amount for your mortgage.

2. Keep track of mortgage rates. A lower rate can mean big savings on any home loan. Talk with your loan officer about current rates. If you’re worried that rates might rise before your loan closes, ask the loan officer about an interest rate lock, which can ensure you’ll be able to get the rate you were quoted.

3. Choose a mortgage broker. A well-qualified home loan broker can teach you more about how to get your first mortgage and what types of mortgage products should fit your needs. The home loan broker that offers the lowest interest rate might not offer the most hand-holding or best service — two benefits you’ll probably want when getting a first mortgage.

4. Save for a down payment. You’ll need to make a down payment to get a first mortgage. If your down payment is less than 20 percent of the purchase price of the home, you’ll also need to pay for mortgage insurance, which protects the lender in case you default on your loan. Some loan programs, like FHA, allow you to use a gift from a family member or other source as part of your down payment.

5. Have all of your documents in order. When you’re ready to apply for a first mortgage, you’ll need to give the loan officer copies of your recent pay stubs, tax returns and bank statements. Having these documents prepared in advance will make the process easier.

Home loan brokers provide a map for the individual to follow. Additionally, home loan brokers act as a tour guide. The right tour guide will be willing to spend the time making sure that individuals fully understand their options.

The tips above were provided by Tanya James of Caltexfunding. For more information regarding home loan brokers, mortgage protection, new home calculators or mortgage payment calculator see the caltexfundingresource site and search Tanya James resource.

Five Factors To Consider When Looking For The Best Home Loans

It is an exciting time, purchasing a new home. There is so much to do but first things first, how do you find the best home loan? The easiest solution is to work with a mortgage broker who’ll do all the legwork for you. Plus, one of the biggest benefits of using a broker is their ability to assess your needs, narrow down the options and then advise you on the best home loans for you.

Don’t let yourself become overwhelmed by all the numbers and fine print, simply focus on the following five factors:

1. Do I prefer a big bank or small lender? Voice your preferences for a small lender or big bank with your mortgage broker at the very start. This will help you to refine your search and may help to speed up the process of researching and comparing the best home loans.

2. Which style of loan is right for me? There are a multitude of loan styles and a reliable mortgage broker will be able to guide you through them and explain the pros and cons of each.

In general, home loans fit into one of the following categories:

i) The standard variable loan: when you take out a standard variable rate home loan your interest will be charged at a variable rate as determined by your bank or lending company. This is an appealing option when interest rates are high and predicted to fall.

ii) A fixed-rate loan: this home loan model allows you to lock in to an agreed interest rate for a fixed term or for the life of the loan. This is good option when interest rates are low and are predicted to rise.

Your mortgage broker will guide you in deciding on the best option for you. This may be a combination of the above two types of loans depending on the economic climate at the time when you are borrowing.

3. Can I afford to do this? Once you have determined which style of home loan suits you best it’s important to look carefully at the loan and ask yourself the following questions – discuss these with your mortgage broker:

i) Have I saved enough of a deposit to establish the loan and cover all of the upfront costs and fees?

ii) What are the exact repayments I will be making?

iii) Is my current financial situation likely to change? Will this affect my ability to pay off the loan?

iv) Do I have adequate income protection to cover my mortgage repayments in the unlikely event that I am affected by illness or injury?

4. Does the loan provide me with flexibility? Before signing on the dotted line investigate how flexible your loan will be. Ideally, you should be able to make extra repayments and pay off the loan faster. Alternatively, you may also like to have the option to redraw on the loan to pay for things like renovations or to access money in an emergency.

5. Am I fully informed? Availing of a loan is a big decision and it’s a huge responsibility. Ensure that all fees are fully disclosed before signing anything. Whilst we all like to be optimistic, life does throw us curve balls from time to time so also make sure you know what your options are should you be unable to make payments or should you wish to sell the property and terminate the loan.

Information on the Modification of Home Loans

The following paragraphs contain information on modification of home loans and how it can prevent a foreclosure to your home. In most cases this option is for those people who can no longer afford the monthly mortgage payments, but are able to pay a lower amount. The loan modification is basically revising the terms of the initial agreement of payment.

The terms are revised in such a manner as to lower the monthly payments on the mortgage to ones that you can afford. The two ways this can be done is by either lowering the interest. If after lowering the interest you still cannot afford the payment; then you can negotiate for an extension of the payment period or a reduction in the amount owing on the principal debt.

The advantage of home loan modification as opposed to re-financing the loan is that you are not taking on the weight of another debt. Taking on another loan will most likely make the situation worse. This is because you are already having problems with payments; a refinancing loan will have higher interests and higher payments. Defaulting on these payments could result in you losing your home. It’s always best to have enough information on modification of home loans when you make decisions.

You are not in the best position to approach your lender and try and convince him to reconsider the terms of your deal. There are companies that specifically deal with the modification of mortgage payments. They will be able to come up with a workable situation that you and your lender can agree to.

These companies have all the information on modification of home loans that you would need to know. Some are better than the others. Look for one that will keep in you in your house whilst you improve your financial situation.