Here are some things your should be aware of when your going out to get yourself a mortgage or while looking for a mortgage broker.
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Be aware of the 'Deal of a Lifetime', if the deal seems too good to be true, don’t get it. The company may be saving money by compromising on their level of service.
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When getting a fixed rate, get a printed declaration which details the interest rate, how long the rate is fixed for, and the conditions attached.
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When interest rates drop, try and leave your repayments as they are. You will therefore be paying more than the minimum each month. You'll repay your loan much sooner. When rates rise again you may not have to change your payment.
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Consider a 15 or 20 year term. Try to pay off your mortgage quickly. Use a mortgage calculator with an amortization function, and see what all you can do.
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Keep your mortgage as small as possible. Aim for “comfortable” affordability.
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Try not to toss your mortgage around to much. Each time you refinance you'll probably invite closing costs and non-refundable fees.
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Beware of prepayment penalties. Many 'no fee' credit lines have them. This can be very costly if you are planning to refinance or sell your house in a couple of year’s time.
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You don't have to sign a mortgage agreement which contains a significant prepayment penalty, if you have good credit. One of the smartest things you can do with a mortgage is to prepay it quickly.
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Do not consider a home without being pre-approved. You will have much more negotiating power with the vendor, and will be able to save thousands of pounds in this way.
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Find out the exact value of your future prospect home. Get more than one appraisal. Judge it against the prices of similar-sized houses for sale in the same area.
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Start putting together the appropriate documents. Provide your mortgage company with documents in good time, don't let your rate lock expire!
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Verbal agreements are useless. When buying or selling property, always get it in script or written form.
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A mortgage is the biggest financial commitment most of us will ever go through, so it’s worth spending a little time getting it right!
