Todays Blog topic is going to be Mortgage loans. Getting a home loan can be tricky business. Well, maybe not getting one, but getting one that you can afford can be tricky.
We suggest that taking on just any home loan can be like buying shoes without trying them on because “if you want to buy a home, there is a lender that will find you a loan…even if there is no way you can possibly afford it.” Since it’s your credit that’s at risk, it is your responsibility to fully understand the loan for which you’ve applied.
Make sure you do your research and find out what the worst case payment could be, adding in the property taxes and insurance. This should help predict what your mortgage will be for the next few years. Don't forget to factor in the mortgage insurance if you are not putting down 20% or more. Mortgage insurance is an insurance that the investor requires that reduces their risk when a smaller amount of down payment is put down. In the event you default the mortgage insurance will pay the investor the portion they are short to cover their costs. It is used primarily if they have to sell in a slow market or when the house has been damaged or market value has decreased.
If you have any questions don't hesitate to ask them in our comment section. We will respond in a timely manner. We love sharing our knowlege with you. The Solutions Team www.solutionsteam.biz
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