Now that you have decided that it is the time to buy that new home, you are ready for step two, the mortgage. Did you know about one third of Americans only take two hours when researching their mortgage options. At the same time they take 5 hours researching their next vacation. The mortgage will affect your lives for up to 30 years a vacation, well about two weeks. There are different types of home loans to consider and each have their good and bad points. It is best that you check them all out and decide what is best for you.
Now I start my mortgage education at my local bank I do business with. I start by filling out a credit application. Once submitted my loan officer will have my credit history to include credit score. With this he can tell me what type of interest I can expect to pay and what loans I am qualified for. He will also tell you what dollar amount you are approved to borrow, based on your income and credit score. Myself I am not interested in what I can borrow I am interested in what I am comfortable paying on a monthly basis to include the escrow. Escrow is the account the lender has, which they collect money for in each payment that the lender will use to pay your home insurance and taxes. The two combined, mortgage and escrow payments, is what your mortgage payment will be on a monthly basis. With this information your lender can then tell you the price of the home you should be looking for depending on the type of loan you use.