Buying a home is an exciting, yet stressful time. After all, this is usually the biggest purchase a person will make in their life-time. It’s an emotional decision. That’s why so many people spend all their time finding that perfect home, but make the mistake of “taking someone’s word for it” when it comes to the part of securing their financing. 

These home mortgage tips and home refinancing tips are designed to keep you focused on the prize, because even the perfect house with a lousy loan can be big trouble in the years to come.

Home Mortgage Tips & Home Refinancing Tips Everybody Should Know

Upfront Mortgage Tips 1:

Don’t get buried under your home. Find the right home that fits your needs and makes you happy, and maybe stretch a little to make it just right. But don’t buy a home (or anything for that matter) that you have to worry about paying for, or that negatively affects your quality of life.

Remember, “Money can’t buy happiness – and neither can poverty.” A good rule of thumb, try to stay within 36% Debt to income (DTI). That’s all of your debt (mortgage, credit cards, car loan, etc.) divided by your total income should equal no less than 36%. 

Upfront Mortgage Tips 2:

Prepare your home mortgage or home refinancing “war-chest.” Getting a home mortgage or mortgage refinancing means paperwork – lots of it. Before you can get a truly accurate gauge on where you stand and what type of mortgage loan you can qualify for, the biggest home mortgage tip I can give you is, you need to know your credit score.

 Every lender or broker is going to want to know your credit score before they give you even a general quote, so get it now. Other documents you will need include W-2 and/or income tax returns to verify your income, pay stubs, bank statements/investments, child support or alimony records. Be prepared and take the hassles out of the mortgage research and closing process.

Upfront Mortgage Tips 3:

Know which home mortgage loan fits your life. With so many types of mortgages out there, it can be a daunting task to decide which option is best for you, and the best deal. Fixed rate mortgages are the most common and probably make the most sense for nearly all home purchases or mortgage refinancing. 

In some cases, adjustable rate mortgages or ARMs make sense from a savings stand point, but not a means of buying a house you can’t afford otherwise (see home mortgage tips #1). There are many types of mortgages to choose from out there. My advice here is, understand the pros and cons of each so you don’t find yourself getting closed on a bad loan – or worse realizing you can’t pay your bills five years from now.

Upfront Mortgage Tips 4:

Do your research on a level playing field. There are tons of sources out there where you can get a home mortgage or mortgage refinancing. I have many competitive mortgage sources to compare here on the site for whatever types of mortgages you’re looking for. If you are a member of a credit union, that’s a great place to visit to get a baseline measurement for a fair deal on your home loan. 

Upfront Mortgage Lenders can also help provide real-time quotes, guaranteed pricing and no hidden fees. When shopping and comparing mortgage rates, make sure the stipulations of the loan are the same – most importantly– loan term, fixed vs. variable rate, points and any other fees/closing costs. Remember the lowest rate is NOT always the best home loan. See the latest online mortgage rates from premier providers here, another great place to start your research.

Upfront Mortgage Tips 5:

Keep learning and stay sharp. And find more home mortgage tips and home refinancing tips. We’ve built this site to provide consumers with some basic fundamentals of financing to save them money and aggravation for auto loans, home loans and personal credit. There are other great resources available like credit.com and bankrate.com that can help you get a more advanced understanding of how loans and financing work. 

Home Mortgage Rates change everyday, and the rules to qualify change almost as often – get educated and stay ahead of the game so next time you need a home mortgage loan, you can actually have fun with your financing! (Alright, maybe that’s just me.)