7 Mortgage Tips for the Rest of 2014

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2014 is almost half way over but do not fret, it is not too late to implement some changes to aid your mortgage. Keep organized and you can still obtain as good mortgage deals. Here are 7 mortgage tips for the rest of 2014.

1. Keep track of your finances

Due to the new mortgage regulations implementing in 2014, lenders are extra thorough when funding home loans. This stresses lenders to make sure that borrowers have the ability to repay their loans. So what can you do? First, be organized. Keeping track of all your finances, such as bank statements, tax returns, W-2s, investment accounts and any other assets you own will make this much simpler. And be prepared to explain any unusual deposits into your accounts. You need proves to where that money came from. Yes, this includes the $1000 that your mother deposited in your account for your graduation. You don’t want to delay your loan closing.

2. Lock in a rate ASAP

Mortgage rates are increasing throughout 2014. So lock in a rate that you are comfortable with as soon as possible if you are planning to get a mortgage.

3. If you still can, refinance.

Think you missed a good low rate? Don’t worry, you might not have missed your chance completely. If you are paying more than 5 percent interest on your home loans, you possibly have a chance for mortgage refinance. If you think you may be able to save with a refinance, but you are not sure, it doesn’t hurt to try. Find out more about refinancing your property, before it is too late.

4. Bargain

As mortgage rates climbs, lenders lost a lot of their refinance business. This means that they will compete with others for your business. In 2014, they will turn their attention to homebuyers and will fiercely compete for their business. Buyers should take advantage of bargaining power they gain with that increased competition. Shop around for the best deal and look beyond the interest rate on the loan.

5. Take good care of your credit

Always make sure you have a decent credit. It’s nearly impossible to get a mortgage without decent credit these days. If you are planning to get a mortgage, monitor your credit history and score until your loan closes. Your mortgage rates will only climb if your credit score is lower.

6. Save! Don’t overspend

You wouldn’t lend money to a person who has barely any money left at the end of each month, would you? That’s the same with loan lenders. After paying debt obligations such as credit cards and student loans, if you don’t have a lot of money left, you won’t be considered as a good borrower. Your debt-to-income ratio (DTI) is too high, you don’t qualify for a loan. Try to keeping your monthly debt obligations below 43 percent of your income.

7. Consider alternative mortgage options

A homeowner planning to keep a house for seven to ten years could take advantage of lower mortgage rates by choosing adjustable-rate mortgage (ARM) instead of the 30-year traditional fixed-rate mortgage. Rates on ARM can be as much as one percentage point lower than on fixed-rate loans.