Home Loans: Preparing To Buy A House
No matter where you look there’s an advertisement telling you that it’s either the best time to buy a house or it’s the worst time to buy a house. With the many changes in the economy and interest rates for home loans jumping all over the place it’s hard to know what this generation of home buyers should be looking for. What are the signs you should look for in a good home loan? Can existing debt have a negative impact on your home buying ability? Here’s a list of some common things people don’t know about home-owning.
Home Loans: Did You Know?
When looking up loan options from different lenders it is possible to get a complete quote about your loan. Lenders have the ability to add many different types of fees onto a loan and throughout the loan process even though they are limited in what they can charge for these fees. These fees are many and without asking the right questions you might find yourself paying more than you expected.
Good Faith Estimate
Many borrowers are unaware they can request a Good Faith Estimate (GFE) from a lender to know exactly what they’ll be paying for. Any and all fees can be viewed in this estimate and can give you a full idea about what you’re borrowing and what you’ll need to pay back. Getting a GFE can greatly improve your ability to handle paying back your loan and keep you out of debt.
What Is an Interest-Only Mortgage?
Some people may take out an interest-only mortgage to purchase a house. These mortgage plans are riskier than other mortgages as the borrower, as the name implies, you pay back only the interest on the principle amount borrowed for a set amount of time. After that time has passed, the borrower must then pay back their interest along with their principle amount borrowed.
Pros/Cons of Interest-Only Mortgage
- Interest-Only Mortgages are perfect for the self-employed. With the interest rate being the only thing you pay for a set number of years, this lends itself well to the constant changes a freelancer’s income undergoes. The flip side is that once the interest period is over the payments can be and normally are higher than the amounts of other mortgages.
- People coming out of college find it easier to purchase houses this way. Normally a college grad has a high upside in potentially earned income depending on their career field. With this outlook graduates can get a head start on their home-owning experience without incurring too much debt early on. The obvious negative side is the possibility that the career path might fail or not yield the proper output.
- An interest-only mortgage can help those in good credit standing maintain their financial health. There are many risks involved with taking out loans, one of which is its impact on your credit. Both a positive and a negative, only those with a high enough credit rating can take advantage of these types of mortgages.
Is Debt Holding You Back From Home Ownership?
Having the constant issue of debt hovering your head can hinder your ability to make a life move like buying a house. Let Guardian Debt Relief help you solve your debt problems. With a debt settlement plan in place dealing with your debt becomes a simple task and lets you focus on progressing with your life. Debt elimination puts you in a prime position to search for a suitable mortgage for a house. In helping you resolve your debt Guardian Debt Relief also gets you used to making payments on a monthly basis. Don’t let debt stand in the way of owning your dream home. Put a company with an A+ rating with the Better Business Bureau to work for you.
Take The First Step!
Take the first step and contact Guardian Debt Relief before you look to purchase your first house to help get rid of that debt, improve your financial standing and put you in a better position to become a homeowner.