Tips to Avoid Paying More for Your Mortgage

Buying a house is a major financial commitment. You want to be certain you're getting the best mortgage rate and terms, and that you will be able to afford your mortgage payment now and into the future. Unfortunately, some people don't really shop around or look at their mortgage options when buying a home. Someone who may spend hours researching and comparing prices for technology or a new car will take the first loan offer they receive.
If you're in the market for a new house, has provided a few tips that will help you obtain the best mortgage possible.

Save Money to Make a Down Payment
If you can make a good-sized down payment, you won't have to worry about financing as much. That may help you get a better rate so your monthly payment isn't as much. While it's tempting to make only the minimum down payment and use the rest of the money for other things, remember that the more you borrow, the more you'll pay in interest. You'll save money by making a larger down payment in the long run. Plus, you'll have lower monthly payments, so you'll have extra money to spend each month.

Look at the Right Properties
Just because you can afford a larger house doesn't necessarily mean that's the right house for you. If it's just you and your spouse, a four-bedroom home may be too much. On the other hand, if you have several children or need space for a home office, it might be the perfect size. Don't buy more house than you need just because you can. Otherwise, you may end up paying for space that you don't actually use, but still have to keep clean and maintain.

This also applies to the extras you might find in a house. If you don't really need a swimming pool, for example, don't buy a house with one. Take the time to determine what you truly need in your future home before you start looking at houses.

Know Your Budget
Do you know how much you can really afford to spend every month? If you don't, you need to figure it out before you start looking at mortgages. First, look at your income. Banks generally won't offer you a loan if your expenses are more than about 30% of your overall income. There are a number of online calculators that will help you determine what percentage your monthly expenses are of your total income.

Remember to take your down payment into consideration, too. Then look at all of your debt and see if you can eliminate some of that. For example, you may need to spend a little bit of your down payment on eliminating a credit card if it helps lower your overall debt percentage.

Know Your Options
You also need to know what kind of loans you qualify for. Many people go straight to their bank and don't even look at things such as FHA loans or VA mortgages. These loans often have very low interest rates, and some don't require much of a down payment at all. If you qualify, these loans are often the better way to go than getting a loan from a traditional lender.

Compare and Contrast
Once you know if you qualify for any of these mortgages, you can compare and contrast them with traditional loans. Always be sure to get quotes from a few different mortgage lenders. While getting recommendations from your gay real estate agent is a great place to start, also take the time to do your own research. Once you have that information, you can determine which mortgage will best serve you in the long run.

Get Pre-Qualified
When you've chosen a lender, be sure to get pre-qualified. This ensures the seller you're qualified to purchase their house. It also helps you know what you can afford. If you're pre-qualified for a $250,000.00 mortgage, you shouldn't be looking at $350,000.00 homes – it's a waste of your time and your agent. It's always better to know what your limits are before you spend a lot of time looking at homes you simply can't afford.

Beyond, here is a list of real estate professionals in Michigan that can help you understand how mortgages work, and what options you may have.

Pride Realty Associates LLC
31874 Northwestern Hwy.,
Farmington Hills
Rich Harrison
Phone: 248-851-8700
Email: [email protected]

Real Estate One
21250 Hall Road,
Clinton Twp.
Ralph Catana
Phone: 586-783-7888
Email: [email protected]

Lynn Stange
70 W. Long Lake Road,
Real Estate One
Phone: 248-561-6967
Email: [email protected]

Linda Lombardini
323 Braun Ct.,
Ann Arbor
The LindaLom Team at Trillium Real Estate
Phone: 734-302-3600
Email: [email protected]

Don Chisholm
26236 Woodward Ave.,
Royal Oak, MI 48067
Real Estate One
Phone: 248-425-4366
Email: [email protected]

Dick Waskin, Broker/Owner
2914 Blue Star Hwy.,
RE/MAX Saugatuck-Douglas
Phone: 269-857-2191
Email: [email protected]

Deborah Campbell
Beverly Hills
Certified Residential Real Estate Appraiser FHA Approved
Fax: 586-261-5500
Email: [email protected]

Century 21 – Curran & Christie
42949 W. Seven Mile,
Keith Ferguson
Mark Dzeikan
Phone: 313-274-1700
Email: [email protected]

Brad Bell
30574 Woodward Ave.,
Royal Oak.
Sine & Monaghan
Phone: 248-414-1697
Email: [email protected]

Berkshire Hathaway HWWB Realtors
880 S. Old Woodward,
Christine Winans
Phone: 248-505-1704
Email: [email protected]

Jim Shaffer
423 S. Washington Ave.,
Royal Oak.
Keller Williiams Real Estate
Phone: 248-288-3500
Email: [email protected]

Johnstone & Johnstone
82 Kercheval Ave.,
Grosse Pointe Farms.
Suzanne O'Brien
Phone: 313-516-6644
Email: [email protected]

Shoreline Realtors
202 Center St.,
Jim Sellman
Phone: 269-857-8030
Email: [email protected]

Keller Williams Professionals – Reese Realty Group
789 W. Ann Arbor Trail,
Darlene Reese
Affiliated with Cross Country Mortgage
Phone: 586-817-2470
Email: [email protected]



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