Mortgage calculator step 1 of 3 for successful transaction

September 28th, 2010

You’re planning to purchase a new home or refinance your existing mortgage. Where to begin the process and when? Here are three areas that are important to keep in mind as you begin and continue your mortgage process for your new home loan or mortgage refinance. Step 1 is already underway since you are on this site using mortgage calculators.

Step 1: Education

Taking on a new mortgage is serious business, even if you already have a mortgage. You are promising to pay a significant portion of your income to a lender every month and you are obligating yourself to a very large debt. Before you make the big leap into a mortgage application, do your homework and educate yourself.

Check out the available mortgage rates and get a feel for where the market is today. Using this site on every Friday you can educate yourself on what is happening in the economy that may impact mortgage rates and if interest rates are trending up or down.

The more education you have the better decision you will make when you reach Step 3.

Step 2: Network

You have family members, co-workers, neighbors and friends who have purchased a new home in the last few months or refinanced their mortgage recently. Take them to coffee or a beverage after work and pick their brains as to what was good and bad about their transaction. What did they learn that they would do differently? Were they satisfied with their service providers? When all the dust settled from the transaction did they spend as much as they thought for closing and with their new monthly payment?

Use your personal network to expand Step 1 and your education. It may cause you to input some different numbers in your mortgage calculator exercises, or it may show that you have been on the right track. Mortgage rates and fees can vary day to day and lender to lender. Did your friend or relative experience this? Mortgage calculators can give you the numbers for a new home loan or refinance mortgage, but not the mortgage itself. For that you need a mortgage professional from a trustworthy source.

Step 3: Commitment

Once you have done your homework and feel well educated about the current real estate and mortgage markets, you are ready to commit to your objective of either purchasing a new home or refinancing your mortgage. Use your knowledge from your personal network and other sources (such as this site) to put together your plan. Once your plan is together bring it to a mortgage professional to work with you to ensure you successfully achieve your goal of a new home or lower mortgage payment.

Once you select your mortgage professional and real estate agent that you trust will represent you and provide you with quality service and current market rates, allow them to work for you. Commit to their services and be assured they are committed to your goal. If you establish this relationship you will have a good transaction with honest communication and everyone working together for you.

Education, personal networks and commitment to a goal are factors that create success in many areas of our lives; it will for your new home loan or refinance transaction as well.

Posted By :
Dennis C. Smith is co-owner and broker of record for Stratis Financial in southern California. He has over twenty years' experience in the mortgage industry.

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