Tuesday, November 6, 2007

Mortgage Crisis Not For Everyone

I belong to Costco and I was recently flipping through the magazine they send to members, Costco Connection, and ran into an article Mortgage Crisis Not For Everyone.

Of course Costco was trying to sell their services, but they pointed some good reminders.

Mortgage companies are going to continue the shakeout in 2008 that has been observed this year. Despite all of this interest rates are still historically low and there are still competitive mortgages out there to be found.

Of course with the recent changes, there are modifications to the the criteria a buyer must meet to obtain a loan. Gone are the days of the stated income, 100% financing with less than perfect credit.

If you are a borrower with decent credit and some money to put down you are in a great position.


Do Your Homework!

Before looking for a mortgage or to re-finance look at your current situation

Check Your Credit
  • Take a look at your credit report to make sure there are not any erroneous dings on your credit. By dealing with these issues before you are looking to buy or re-fiance you could potentially increase your credit score and could expand the mortgage options available to you.
Save and Document
  • Saving for a down payment will tremendously help find you the best loan possible. There are programs out there that do allow for 100% financing but if you have a decent down payment you will have more options
Determine Your Budget
  • This is tremendously important. You really want to sit down with a reputable loan person who can help you understand the different loan options, the monthly cost of a mortgage, the added expenses of taxes and insurance.
It is imperative that you find a loan person who can and will sit down with you to help you clarify your motivations for buying or refinancing and someone who will be honest and straightforward regarding the process and help you understand the loan you have, as well as understand the monthly costs including taxes and insurance. I can personally recommend Chris Hudson. He is honest, reliable and will spend the time needed to help you understand you loan. He can be contacted by email at chris@myhomeplan.com or on the web at www.myhomeloanplan.com

It is a great time to buy. Being educated is the first step.

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