Once you research the types of financing available, determine which is best for your financial situation when buying a home: 15-year mortgage or 30, adjustable or fixed. If you are looking for security and a guarantee that payments won’t increase, a fixed rate mortgage might be the way to go. If you believe mortgage rates could still fluctuate and you want more flexibility, consider an adjustable rate mortgage.
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Your first action item is to seek pre-approval from a lender. It's important to note that pre-approval and pre-qualification are two different processes. For pre-approval, the lender will check your credit and other financial information to determine what price home you can afford. (You can use an online mortgage calculator to give you a ballpark figure on how much home you can afford.) This will give you a price range to stay within during your home search and lets buyers know that you’re serious when you make an offer. Getting pre-approval for a standard loan should take a couple of days.
In addition to a down payment, you will also have to pay closing costs to finalize your loan. This can be a substantial amount of money, so it’s important to plan ahead and be aware of the amount you will likely have to bring to the table. Make sure you have budgeted and saved up enough for these fees in advance, so they don’t catch you by surprise.
Insurance: This will be paid to a homeowner’s insurance company of your choice; this is required when you have a mortgage. Lenders require that your insurance cover the cost of rebuilding the home if it is ruined by fire or other disaster. This “replacement cost” is determined by your insurer, and must be agreed to by your lender. Insurance will typically cost $700 to $1,200 per year for a single family home.
The possibility of losing your home because you can’t make the mortgage payments can be terrifying. Perhaps you’re having trouble making ends meet because you or a family member lost a job, or you’re having other financial problems. Or maybe you’re one of the many consumers who took out a mortgage that had a fixed rate for the first two or three years and then had an adjustable rate – and you want to know what your payments will be and whether you’ll be able to make them.
There are numerous mortgage delinquency solutions and programs that you and your lender can review. When it comes down to it, the only thing that can stop a foreclosure from occurring will depend upon what you can afford to pay and what your bank will agree to accept. This will be based upon, among other things, your total household income and expenses, what other assets and resources you have available to you, the amount you are behind on your mortgage payments, the type of loan, and other factors. First, you need to understand the foreclosure process. Then explore some of options and resources that can provide you with mortgage help. The final objective of this entire process is to help you stop a foreclosure from occurring. Some of the various steps to take include the following.

Yes, the word “homework” makes us shudder too, but this time the reward is much bigger than memorizing geometry theorems or the periodic table. You’re finding a home but you’re also making a financial commitment you’ll have to live with for years: get the best deal you can. Research loans, rates and brokers exhaustively before you sign or commit to anything. Doing the hard work now will pay off down the road with a better rate and terms.
A lender offers you a mortgage interest rate based upon a number of factors, but by far the most important is the secondary market for mortgages. Banks typically sell their mortgages to aggregators like Fannie Mae and Freddie Mac, which are government-sponsored enterprises that buy and repackage mortgages. Aggregators issue mortgage-backed bonds to investors in the secondary market. The daily fluctuations of supply and demand affect the interest rates investors require to buy these bonds. As the economy strengthens, investors require a higher interest rate on bonds because of growing competition for their investment dollars. Banks peg their mortgage interest rates to the daily interest rate on mortgage-backed bonds in the secondary market.
If there’s going to be a gap between the sale of your home and the purchase of your new property, some people apply for what’s known as a ‘bridging loan’ to bridge this gap. This type of loan means you can move into your new property before you’ve sold your home. However, these should only be considered a last resort as they usually very high interest rates and fees. Seek professional advice if you’re unsure, and if you’re considering this type of loan you must be comfortable with the risks involved as you’ll essentially own two properties for a period of time.
Amortization is what you are actually paying per year against your loan. You can get a mortgage with a term of 10, 15 or 30 years. You pay each month and the principal decreases until it’s paid off. The payments don’t change but at the beginning of the term, most of the payment is going toward interest. By the end of the term, that’s flipped and you’ll be paying down the mortgage principal.
If you plan on staying put until the mortgage is paid off, a fixed-rate loan will give you stability. The interest rate is a little higher than an adjustable-rate mortgage (ARM). But it won’t go up like an ARM can. The only things that will change your house payment over time are property taxes and insurance rates, but those will change regardless of which type of loan you get.

Are you looking for information about grant programs that may help with mortgage payments? Through the Department of Housing and Urban Development (HUD), the federal government offers mortgage payment assistance to the public. States and non-profit agencies have followed the federal government's lead and also offer mortgage payment grants. While competitive, these grants can help homeowners get back on their feet and avoid foreclosure.
Many real estate agents want you to be pre-qualified for a loan before they will start to work with you. The mortgage pre-qualification process is fairly simple, usually just requiring some financial information such as your income and the amount of savings and investments you have. Once you are pre-qualified, you will have a better sense of how much you can borrow and the price range of the homes you can afford.
Treasury/FHA Second Lien Program (FHA2LP): If you have a second mortgage and the mortgage servicer of your first mortgage agrees to participate in FHA Short Refinance, you may qualify to have your second mortgage on the same home reduced or eliminated through FHA2LP. If the servicer of your second mortgage agrees to participate, the total amount of your mortgage debt after the refinance cannot exceed 115% of your home’s current value.
FHA Special Forbearance: If you are having difficulty making mortgage payments because you are unemployed and have no other sources of income, you may be eligible for FHA's Special Forbearance. FHA now requires servicers to extend the forbearance period, by offering a reduced or suspended mortgage payment for up to twelve months, for FHA borrowers who qualify for the program.
Simply put: Nope, not so. The mortgage pre qualification process can give you an idea of how much lenders may be willing to loan you, based on your credit score, debt and income. However, there’s no guarantee that you’ll actually get the loan. Once you find a home and make an offer, the lender will request additional documentation, which may include bank statements, W-2s, tax returns and more. That process will determine whether your loan gets full approval.
Once you research the types of financing available, determine which is best for your financial situation when buying a home: 15-year mortgage or 30, adjustable or fixed. If you are looking for security and a guarantee that payments won’t increase, a fixed rate mortgage might be the way to go. If you believe mortgage rates could still fluctuate and you want more flexibility, consider an adjustable rate mortgage.

As you’re comparing quotes, ask whether any of the lenders would allow you to buy discount points, which means you’d prepay interest up front to secure a lower interest rate on your loan. How long you plan to stay in the home and whether you have money on-hand to purchase the points are two key factors in determining whether buying points makes sense. You can use this calculator to decide whether it makes sense to buy points.
Home equity loans are also referred to as second mortgages because you use your equity as collateral. If you obtain a home equity term loan, you will receive a lump sum and will have to make a monthly payment. You can also apply for a home equity line of credit, which provides you with access to a revolving account. That allows you to withdraw and repay money over the course of a specific period of time.
• Be ready to move fast. A well-located house in good condition and priced right will sell quickly; it can even be the first day it goes on the market. A buyer needs to be ready to commit if they find a home they like because they risk the chance of losing it if they don’t. One of the things First Ohio Home Finance is known for is how quickly they work for their customers.

Bank of America Foreclosure Prevention - From January 2008 thru current, BOA has modified hundreds of thousands of mortgages. Some of those home loans were originally issued and held by Countrywide. Bank of America offers homeowners several foreclosure and mortgage assistance programs, including modifications, principal reduction, short sales, interest rate reductions and other resources. The lender also has opened help centers in many major cities, which provide homeowners with one on one counseling and free advice. Read more on all of the Bank of America foreclosure programs.

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