4 things to do before buying a home

1. You should, get preapproved for a mortgage before you go looking for a home.
Pre-approval is easy, and you can be relaxed when shopping for your new home. Your local mortgage broker can provide you with written preapproval for you at no cost and no obligation, and it can all be done quite easily over-the-phone or via email. Do not pay to submit an application! Most Real estate agents want you to have a pre-approval letter before you start looking for a home.
2. Know what monthly payment you can feel comfortable with.
When you discuss mortgage preapproval with your bank or Mortgage broker, find out what amount you qualify for. But you should have determine what kind of monthly mortgage payment you can afford each month yourself first. Many banks and lenders will give you an approval for a bigger amount, but you have to be smart. Just because they give you a bigger amount doesn't mean you should take it. It is just like a credit card. Just because your limit is $30,000 doesn't mean you should spend that much. Your credit situation may give you a pre-approval amount that is higher (or lower) than the amount of money you would want to pay out each month. By talking with your mortgage broker or bank to determine what this payment amount is, and what value of home this translates into at today's rates, you won't waste time looking at homes that are not in your price range.
3. You should be thinking about your long term goals and situations, to determine the type of mortgage that will best suit your needs.
My belief is that most people should get a fixed mortgage. There are a number of questions you should be asking yourself before you commit to a certain type of mortgage and be honest with yourself! How long do you think you will own this home? Are you discliplined in saving for taxes and insurance payments? What direction are interest rates going in, and how quickly? Is your income expected to change (up or down) in the near term, impacting how much money you can comfortably afford to pay monthly? The answers to these and other questions will help you determine the most appropriate mortgage you should be seeking.
4. You should seriously consider dealing with a Mortgage Expert that you are comfortable with. Consider dealing only with a professional who specializes in mortgages that is not pushy. An expert that will take the time to explain the mortgage process. Remember your home is one of the biggest investments you will make. You need to understand the mortgage and financing process.

For more on Michigan mortgages, mortgage information, and credit go to my website www.RussRavary.com Also you can view testimonials from some of my clients.

Reducing your mortgage payment

So you got the notice in the mail that for $150 you can sign up for a mortgage reduction plan. They say they can CUT UP TO 7 YEARS OFF YOUR 30 YEAR MORTGAGE. The plan most likely calls for you to send in half your mortgage payment every two weeks. This is called a bi-weekly mortgage reduction plan.

THIS PLAN WORKS!!!!! If you break down the plan it works like this. What you are actually doing is making 13 payments a year. There are 52 weeks a year. So if you send in a payment every 2 weeks you are sending in 26 payments. So if you are sending in 26 payments every 2 weeks (26 divided by 2=13 payments) it is 13 full payments.

No, you are not sending it directly to the mortgage company usually. What the company that is promoting this is doing is having you send in the first ½ payment then holding it until you send in the second ½ payment. Then the company sends it in to your mortgage company. For this there is a $150 upfront fee and usually a $3 charge per payment. So it cost you sometimes $75 a year. Check out the charges.

Is it a good deal? Yes if you do not have the discipline to do it yourself. It pays off your mortgage quicker.

BUT YOU CAN DO IT YOURSELF AND AT NO COST! If you just send in an extra 1/12 of a payment each month you will do the same thing. Let’s say your mortgage is $1800 a month. If you sent in 1/12 ($150.00) of your mortgage payment added to your regular payment. ($1950) you should cut off about 7 ½ years. So instead of a 30 year mortgage you should be paid off in about 22 ½ years. And you did not have to pay a middleman.
Every extra little bit of money that you send in with you payment will reduce how long you will pay on your mortgage.

For more mortgage information free free to go to my website www.russravary.com