Some Basic Tips on Getting a Mortgage

Here are some basic tips on getting a mortgage:

1. You need to remember that you will not just be paying principle and interest. You will also be paying for: Property Tax, Homeowner's Insurance, maintenance, and possibly Private Mortgage Insurance. Add about 40% onto your basic monthly costs.

2. Gifts are a great source for downpayments! But, make sure that the person giving you a gift will sign something saying that it is a GIFT, NOT a LOAN.

3. Closing costs can cost up to 2 to 3 percent of your mortgage amount. Some of these costs can be rolled into the loan. In a buyer's market, the seller may pay for some of your closing costs, but be prepared to offer them more on the price of the home. Be prepared to pay closing costs no matter what.

4. Mortgage bankers and brokers will shop around for the best loan deal for you.

5. Set a price limit before you go shopping. If you should get into a bidding war, walk away once the price exceeds your limit.

6. Your home must pass an inspection, and it must appraise out at the amount you offer to pay. So, if you offer $100,000, and the home only appraises for $90,000, you need to go back to the drawing board and re-negotiate with the sellers on your contract.

7. Make sure when you are shopping around for your loan, that you are finding a company and loan officer that is easy to talk to and deal with. You don't want to be stuck in a hairy situation with someone who is unwilling to step up their game for you. You also want someone who will be honest with you, and who will not put you in a mortgage that you will be unable to afford.