We live in the age of creative mortgage financing. Housing prices have escalated to the point that too many people can’t afford to by homes under the old home mortgage rules. It was pretty standard for a person or a couple to come up with a down payment of ten or twenty percent and mortgage the rest at a fixed rate for thirty years or so. Now that so many homes cost so much, most people can’t even imagine saving enough for a down payment. In fact, a down payment can easily be as much as the whole house once cost. That’s why mortgage lenders have designed a variety of programs to help the less-than-wealthy purchase a house.
Many people don’t realize that lending money is a competitive industry, much like many others. If you do some browsing on the Internet this fact will become apparent pretty quickly. You’ll see hundreds of sites where lenders are competing to “give” you money at a rate lower than everyone else. What they don’t tell you is that there are often hidden fees and some of these people will be out of business long before your loan is paid off. That could turn into bad news for you and your house.
There are several things you should do before you even apply for a home mortgage in Yuma. You definitely need to take some time and educate yourself on real estate and mortgage terminology. The Internet is great for this as there are free real estate glossaries and explanations of the different types of loans you may qualify for. If you prefer, you can learn about these things in books or by talking with a trusted real estate agent. It really will help you to have an idea of what a loan officer is talking about, especially if this is your first time to buy property.
Another important step is to obtain free copies of your credit report from the three main reporting agencies. We’re all entitled under the law to access these once a year. Your loan officer will be looking at this while he or she is evaluating your application, so it’s important that you correct any mistakes ahead of time. You’ll want to verify that your name, address, social security, and all other personal information are accurate. Then you need to check each account. Sometimes payments are shown as late or even not made, when in fact you’re up to date with everyone you owe. An error like this can take a few months to correct, so make sure that you allow plenty of time to review your reports.
Closing costs and other fees are crucial to understand before you sign your mortgage. Some lending agencies make thousands of dollars extra by charging hidden fees to their clients. They are required to give you a good faith estimate upfront, but it’s up to you to read the fine print.
One reliable company that’s now in Yuma is Wausau Mortgage Company. They have made it their goal to help each person in the area be able to own a home of their own. Instead of rushing you through so they can earn their commission quickly, their loan officers take their time and work with you to find the best terms for your particular circumstances. Like other mortgage businesses they are using creative financing, but the difference is they want to make sure that you can actually afford to make your mortgage payment.
Click here to get a free copy of Jeff Nelson’s, “7 Common Home Buying Mistakes,” a 10-page report that describes the mistakes to avoid when purchasing your new home in Yuma, Arizona.