It is a guest post by Chrismack. He is a mortgage specialist, currently he is working on home mortgage loans, mortgage loan calculator and mortgage loans.
People usually become very overwhelmed even thinking about getting a mortgage. Well there's a few simple steps to remember when applying for a mortgage. You won’t be an expert after reading this, but you'll know what to do and maybe even research more to gain the knowledge you need to apply for a mortgage loan. These mortgage calculator tips are:
• First, you should use a mortgage calculator to determine how much of a monthly payment it is for the type of home you're looking for. Maybe it's in the 150,000 range or the 300,000 range. The best number to start with is your down payment. You want to avoid PMI, and in order to do that you must put down 20%. So if you have 30,000 to put down then you should probably look in the 150,000 range. The banks are being very careful in this tough economy so without a down payment, it will be very difficult to get a mortgage.
• Once you figured out your monthly payment amount you can go to the bank with better figures in mind so that you're not oblivious when they start throwing numbers at you. They will ask you your income for the last 2 years, social security number, bank statements, how much cash you have in the bank and much more. They're going to pull your credit score and check your debt to income ratio to see how much buying power you have. From there they will tell you how much you can afford.
• Those numbers are easy to figure out though because you know how much you can afford and the banks calculation is very accurate. So you should have a good idea of how much more per month you can afford. Let's say its 1500 per month. Remember that it's not just the monthly mortgage payment, but also the monthly taxes and the condo fee if there is one. You don't have to add in the home expenses though, the bank will take care of that when they are figuring out your borrowing power based on your income.
• I linked all of the key terms to my website for you to look at if you're not sure what they are. There's a lot more information there about buying a home and tips of how to deal with the bank and get the best current interest rates for your situation.
• A Down Payment is a very important part of getting a mortgage. It can lower your Debt To Income Ratio with the bank and allow you more buying power. I suggest using my Free Mortgage Loan Calculator to help you figure out exactly what you should put down.
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