Are you in the market for a house? Or perhaps you are looking to refinance your current residence? To do this, you will likely have to obtain a mortgage. The process can often be confusing, but it should go more smoothly with this information.

If you want to accurately estimate your potential monthly mortgage payment, consider loan pre-approval. Make sure you shop around, you will learn what you are eligible to get, allowing you to figure out your price range. Once you have this information, you will have a better understanding of the expenses involved.

Hire a consultant if you feel you need a little help. There is much to learn in this process, and they can help you obtain the best deal you can. They can also ensure that the terms are fair for you and not just the company you chose.

Learn the history of the property you are interested in. Know what the property taxes are before you sign any papers. Avoid being unpleasantly surprised with a higher than expected tax bill because your property is assessed at a much higher value.

If your mortgage is for thirty years, making additional payments can help you pay it off more quickly. That additional money will go towards the principal on your loan. If you regularly make extra payments, the interest you pay will be significantly reduced and the loan will be paid off faster.

The easiest loan to get is the balloon mortgage loan. This mortgage has a short term and you will have to refinance the balance you still owe when the loan expires. You run the risk of having the interest rate increase or maybe you won’t be in as good of a financial situation as now.

Once you have your mortgage, start paying a little extra to the principal every month. This will help you pay off your loan much faster. For instance, paying an extra hundred dollars every month towards your principal may cut the loan terms by about 10 years.

Know the fees associated with your mortgage before signing your loan agreement. There will be itemized closing costs, commission fees and some miscellaneous charges. Some of these may be negotiated with either the seller or the lender.

Remain honest through the whole loan process. If you are dishonest, it could result in your loan being denied. If you’re lying to the lender, why would they trust you?

If you have less than stellar credit, it would be very helpful for you to save more money toward your down payment. It is common practice to have between three to five percent; however, you’ll want to have about 20 percent saved as a way to better your chances of loan approval.

Now, you are more educated about home loans. Use what you’ve just read to make smart decisions. Owning a home can be one of life’s greatest achievements, so don’t miss out because you are afraid of the mortgage process.