Tag Archives: Mistake

Mortgage Mistakes That are Easy to Make

Getting a good mortgage deal could save you thousands of pounds, but slap mortgage fees on to your mortgage and you’ll be undoing your hard work at the last minute.

With interest rates at a record low over the last 2-3 years, banks have had to find other ways to make extra profits from their mortgage customers.

As a result, mortgage fees have steadily been climbing year on year and can now easily run into the thousands rather than the hundreds of pounds.

Read more: The Mortgage Mistake That’s Easy to Make

How could you smartly refinance your home loan in 2011?

As the mortgage rates keep on fluctuating, there are many homeowners who are confused about whether to refinance their home loan and save a considerable amount of money. If you too are going through dire financial straits and are unable to arrange the high monthly payments on your current mortgage loan, you can certainly seek help of a refinance loan. Getting informed about the present refinance rates is very important before taking a plunge into the refinance bandwagon. A small mistake could cost you dollars in the long run. Therefore, you need to know about the vital steps that you need to take to refinance your mortgage loan in 2011.

1.Know your home value and compare it to what you owe on the home loan

While you’re about to consider a refinance, you must be having a clear idea of the how much money you owe on your house. If you still do not remember, you can check the last statement from the mortgage company. As you come to know this amount, you need to determine how much your house if worth. You may ask a real estate broker to get to know about the average estimate of your house. Divide the home value by the amount you owe on the home loan and see what percentage of the home value you owe to the lender. This will be your loan to value ratio which is necessary before refinancing your mortgage loan.

2.Determine whether or not you have any other lien

The second thing that you need to determine is whether or not you have a second lien that is a home equity loan or a line of credit. If you have, you can add that amount to the main mortgage loan. As you get the total amount, you need to divide it by the estimated value of the home. This will help you determine the total loan to value ratio and use it to calculate the amount that you need to pay to your lender. Also calculate the monthly payment that you require paying and check your affordability so that you do not default on your refinanced loan.

3.Call your lender and know the current refinance rates

As you’re done with your calculation, you must call your lender and ask for the refinance rates. Though you can make an online search to get the present mortgage rates, yet you must also check whether or not the lender is true to his business. Call your lender and negotiate regarding a refinance loan. Check the interest rates, repayment term and the monthly payments so that you can evaluate whether or not you’ll be easily able to make the repayments.

Thus, if you’re a prospective homeowner for refinancing your home loan, get to know the current refinance rates so that you can strike the best deal while refinancing your home loan. Make sure that you do not default on your monthly payments after refinancing and help maintain your credit score.

How to Buy a House – Avoid This Mistake by Asking 9 Important Questions While Previewing Homes

How to Buy a House – Avoid This Mistake by Asking 9 Important Questions While Previewing Homes

The secret to buying a house is knowing how to prevent this big mistake. Instead of relying on feelings, you should preview all homes using a home buyer checklist.

Everybody knows that buying a house is an emotional decision and why shouldn’t it be? Experienced and first time home buyers alike can feel both elated and discouraged during the home buying process.

Admittedly, one day a home buyer may feel depressed and anxious wondering if they will ever find the right house, at the right price, in the right location.

Another day they may suddenly feel exhilarated discovering the house of their dreams and make a sudden decision without adequately inspecting their future home.

Because buying a house can certainly be emotional it is important that a buyer be armed with a practical checklist. Making decisions based on intuition alone can cause a buyer to stray off course. After all, being prepared before you preview all homes with your Realtor will help keep your search for the perfect house on track.

Have you considered what an inspection checklist should cover?

Begin your home buyer checklist by writing down the minimum requirements you expect in a new home. You can also add some of the wish list items you would like to have but are not absolute necessities.

After listing your basic necessities and your wish list items, ask yourself the following questions. By asking these questions you can more easily zero in on whether a certain house meets your expectations.

1. Which obvious items require repair or even expensive updating? Write down concerns and talk them over with your real estate agent.

2. Will the size of the house be sufficient in the years to come also? For example, if you are planning on having children will there be enough space. Another example could be a parent or family member living with you in the future. Try to anticipate your future needs.

3. Are the number of bedrooms and bathrooms sufficient? Be sure you think about other uses for bedrooms such as a home office. If you intend to start a home based business or your employer allows you to work from home you may need that extra bedroom.

4. Is this house structurally sound? Be on the look out for red flags indicating physical problems. Doors not shutting well, windows that don’t slide open or standing water around the foundation are examples. It is recommended for every home buyer to shop safe and buy smart by hiring a home inspector.

5. Are the plumbing, heating and electrical systems in working order? As you walk through each house take note of any signs of leaky faucets, plumbing leaks under sinks or in laundry facilities. Turn on overhead lights and try plugging in a small appliance. Find out if heating and air conditioning systems are working properly.

6. Ask what appliances are included with the house and check to see if all are in working order.

7. Is the yard big enough? Or perhaps you prefer no yard at all? Whatever your intention regarding yard size be sure you consider whether it is suitable.

8. Do the dimensions of the rooms accommodate your furniture? If the house is smaller, will you need to store or sell some of your current furnishings? If the rooms are larger, you may have additional expenses in order to furnish them adequately. Jot down your thoughts.

9. Will there be enough storage space? Take note of cabinet space, number of closets, and other additional areas that can be used for storage. Also be sure to discuss lack of storage and how you will manage if you buy this home.

Always bring along these three things, a tape measure, flash light, and note pad.

For ease of comparison, keep an individual home buyer checklist for each house you walk through and create a method to score each item on the list. You may give certain items higher values than others or you can give them all an equal value. Regardless, be consistent so that after you have visited several houses you can go back and analyze the scores.

Use your home buyer checklist to discuss any concerns you have with your Realtor, your greatest ally when buying a house.

Clearly this article has detailed how to avoid a big mistake home buyers make when previewing houses by being prepared with a valuable checklist. Put simply you will accomplish two things. First your Realtor can suggest possible solutions to your concerns. Second your agent will better understand what you are looking for and show you properties that may be more to your liking.

Move at your own speed when buying a house and remember to preview all homes using care and good sense.

First Time Home Buyer Programs

Kate Ford at Get Your Best Mortgage Rate is today’s mortgage translator on a crusade to help homeowners save money. For tips on how to get a mortgage and avoiding mistakes while buying a house, visit Kate today.

More Buying A House Articles