Mortgage Facts

If you learn some facts before you apply for a loan with a bank or mortgage broker, you will be able to secure a better deal. The lender will first look at your debt to income ratio. This will let you and the broker know how much house you can afford and this amount you can calculate yourself.  It is also a good idea to know the difference between pre-approved, pre-qualified and a loan commitment. 

Each of these will effect your offer to buy as well as the contract your receive. There are also bi-weekly plans for mortgage payments and this option can help you pay off your mortgage faster. Be aware of how these work and then find out other ways to lower your interest and pay off your loan quicker.  If you are unable to repay your debt, a lender has a tool to use to recover those funds. Both a deed of trust and a mortgage are security instruments and one lets the lender foreclose easier. 

If you ever feel uneasy about your lender and the questions he asks, keep in mind loan fraud is alive and well in this industry.  If you will be needing home insurance, take a look on discountvouchers.org for deals and coupons for this purchase.