Home loan mortgage in Yuma County Arizona AZ.

You can find a home loan from several types of different lenders. There are banks, credit unions, companies that specialize in mortgages only as well as other thrift institutions like savings banks and loan associations. The wonderful thing is that, with the advance of the internet, you are no longer at the mercy of the local bank, although they may still be one source that you check with when comparing rates and total mortgage packages. Remember that when dealing with a mortgage broker, they arrange transactions and do not typically loan money directly. They do not provide this service for free but usually do have access to more than one lender which can sometimes save you so money by having competitors compete for your business. If you decide to go through a broker, check with more than one and let the brokers compete with each other. Remember, a broker is not obligated to get you the best deal until you contracted with them so I would check with more than one and let each one know that you are also looking elsewhere. All lenders are in it for themselves, you have to be the one to look out for you!. Also, some financial lenders act as both broker and lender and they do not necessarily have to tell you that they are a broker too, therefore BE SURE TO ASK IF A BROKER IS INVOLVED IN YOUR LOAN. Brokers are usually paid for their service through points paid at closing or an "Add on" to your interest rate. Sometimes you even can get hit up for both extra charges. If you are dealing with a broker, ask them how they are compensated so that you can compare the different fees as well.

First of all, you want to get quotes from several companies. Remember, if you can save even $ 8.00- $ 10.00 per month, that can add up to a nice amount over the life of a 30 year mortgage. It will either be in your pocket or the lenders. Ask about ALL of the costs involved. Just knowing the monthly payments is not good enough and may be costing you money in the long run.

Ask each broker and/or lender for a list of their current interest rates. They will probably quote you different rates depending on the size of the the down payment, the points that you pay up front (more on the later) and how long the loan term is. You will generally get a better interest rate on a 15 year loan as opposed to a 30 year loan but you have to remember that you are paying off the 15 year loan with todays dollar amount that may be worth must less in 15 years and every less in thirty.

For example, you make $ 1,000 a month now and have a mortgage for 15 years at $ 100.00 per month. You get a $ 30.00 per month pay raise every year. In 15 years you would be earning $ 1, 450 a month and the home loan would still be the $ 100.00 per month. Thirty years could lower the payment to around $ 68.00 per month. I realize that these numbers are pretty low by todays standards but I am just trying to give you something to think about when it comes to your mortgage.

Ask if the loan is fixed rate or adjustable. A fixed rate loan stays the same over the life of the loan. An adjustable or viable rate loan can cost you much more if interest rates go up. Most economists agree that if and when we pull out of the current recession, the interest rates will be going up. This means that anyone with an adjustable mortgage will soon be paying more. To be honest, I would stay away from adjustable rates loans. They usually start off with a lower rate than the fixed loans but they can really hit you hard down the road. At least with a conventional fixed rate loan, you are locked in. If you are going for an adjustable rate loan, ask each lender how the rate and loan amounts can vary and if your rate and loan amount would go down if the rates drop. Amazingly, some loans don't go down, but they sure can go up. I would definitely stay away from these. Again, do what you want, this is my opinion. Just free friendly advice to try to help you get the best mortgage possible and to secure you financial future as well as it can be secured.

Ask each lender about the loans APR or annual percentage rate. This takes into account the interest rate that you will be paying as well as the points, brokers fees and other credit charges and fees that you may be required to pay, but they are all bundled and expressed as an ANNUAL PERCENTAGE RATE.

Know how much of a down payment that you can afford to pay on your home loan
Know what kind of a monthly payment that you can afford to pay every month.
Check the local estimated taxes on a home that you may be interested in. If you are just going for pre-approval, try to get an idea for the local tax offices of what you can expect to pay in taxes on a home in your price range.
Also check get a cost of insurance estimate for companies that supply homeowners insurance in the area.
If you are looking at a particular home, find out the last time it was appraised and get the value. If the appraised value is way above the asking price, it can play in your favor.

To find out how much of a mortgage you can afford, we have provided you with a mortgage calculator. Just enter the amount that you want to borrow, the interest rates and the years and you will see the amount that you have to pay. You can save money by making bimonthly payments since it cuts down on the interest.

Then all you need to do is ask each lender what percentage your mortgage payment and other bills are allowed to be in comparison to your income. For instance, if they tell you that you mortgage and other bills can be no more than can be no more than 30% of your income and you make $ 5,000.00 per month, you know that your bills including a mortgage can be no more than $ 1,500.00. If your bills are $ 500.00, then the mortgage can be no more than $ 1,000.00 per month. Check with different lenders as the percentage can be different depending on factors such as your credit and the lending institutions rules.

Click here to check out our free mortgage calculator

If you have minor credit problems that were caused by illness or a temporary loss of income, you may still be able to get a lower cost loan. Be prepared to explain the cause of the negative report. If you have bad credit that cannot be explained, you may not be able to get a loan or you may have to pay more in fees, down payments and interest than someone with good credit but don't let that stop you from trying. Call or email numerous lenders. Ask them if you can get a loan and what you will have to pay or ask them what you have to do to be able to apply. Some will tell you how long you have to wait and show good credit before they will take an application. Check around, shop and compare no matter what. It can save you money in the long run no matter what your credit history is!

What about the fees on a home loan? Unfortunately the are usually many fees on a home mortgage loan. These will typically include loan origination or underwriting fees, broker fees if you are using a broker, transaction fees, application fees, appraisal fees, settlement fees and closing costs. Any lender or broker that you deal with should be able to give you the dollar amount for each of these fees and many of them can be negotiated. Applications fees and appraisal fees are usually paid when you apply for a loan. Other fees are usually paid at closing and in some cases you are allowed to borrow the money to pay some fees but of course, the loan amount and overall cost will increase. There are also loams called "no cost" where you pay no fees up front or at closing but the interest rates is usually higher on these loans...sometimes substantially. Be sure to ask your broker or lender about the fees and what each includes. SOme fees are lumped together. Get the bottom line to compare loan offers from numerous lenders.

Some lenders require 50% down, some 25% and some as low as 5%. It depends on what you are buying. A 20 year old single wide mobile home will probably require 50% down if you can get financing at all. If you do not pay at least 20 percent the lender will usually require that you purchase private mortgage insurance or PMI. This protects the lender in case the home buyer fails to pay. If you are required to get PMI, ask what the total cost of the PMI will be as well as how much you have to pay extra for it and for how long. One other option to cut down on the amount that you have to pay down is to find a lender or broker that goes through the FHA (Federal Housing Administration), the VA (If you are a qualified veteran) or any other services that the government may have available to help borrowers and spur the economy. Ask each broker and lender what is currently available. Remember though, what you don't or can't put down will cost you more in monthly payments.

Where can I get a free mortgage worksheet? Back to top

Click the link here to download a free PDF mortgage worksheet to keep all of the information that you need in one handy location. Use the worksheet when you contact the lenders to keep track of the best and worst deals. A little work can go a long way to saving you money for 10, 15 or even 30 years. Remember, it is either going to be in your pocket or the mortgage lenders.

Get your free mortgage worksheet here