How do I choose the best loan program?

Your personal situation will determine the best kind of loan for you. It’s not just about credit scores and available equity, it’s about understanding your long term financial goals. When considering mortgage options you should start by asking yourself a few questions. This will allow you to narrow your search among the many options available and determine which loans suits you best.

Question 1: Do you expect a significant change in your financial situation over the next few years?

Question 2:How long do you plan to stay in your home?

Question 3:At what age do you hope to retire and at what age do you wish to have all your mortgage debt paid off?

Question 4:Do you have any significant expenses on the horizon; college tuition, major home improvement projects, new vehicle?

Question 5:Are you comfortable with the idea of fluctuating mortgage payments?

Question 6:How much money do you need to put into monthly savings to meet your long term financial goals?

Question 7:What are you ultimately trying to accomplish with your financing selection?

Before you decide which mortgage program is right for you create a detailed list of answers to these questions

This list will also help you in selecting a mortgage professional. An experienced loan officer should ask you these questions before providing you with specific loan options. There are literally hundreds of loan programs available and you should be prepared to have a meaningful exchange with your mortgage professional before deciding on a loan program.

Choose your lender carefully

Look for a lender that offers a reputation for customer satisfaction. Be sure to choose a company that offers helpful advice and that makes you feel comfortable. Brand recognition doesn’t always translate to the best interest rate and service. Many smaller brokers/lenders have the ability to approve and process your loan locally plus they will have a strong understanding of home values and local conditions in your area.

Make sure you get everything in writing AND make sure you take the time to read what you receive.

Don’t assume anything. Getting a mortgage doesn’t have to be complicated it just takes a little planning. Asking yourself a few simple questions will save you lots of time and the answers will go a long way toward establishing a retirement plan and household budget.