The Perfect Mortgage Solution - 3 Steps to Success

Obtaining the perfect mortgage solution is only possible if you take your emotions out of the equation. Whether you are buying a new home or refinancing your existing home, there are certain steps you can take in order to achieve the best rate at the lowest cost. First and foremost, you need to be honest with yourself. Make financial decisions based on the facts of your individual situation. As the recent mortgage debacle has proven, too many borrowers placed themselves at risk and set themselves up for failure. Granted, the relaxed underwriting standards contributed to the problem, but the bottom line is ultimately you are responsible for your financial well being. With that being said, there are certain steps you can take right now to put yourself in the best possible position in order to obtain the perfect mortgage solution.

Step #1: Get a copy of your credit report.

If you are thinking of buying a new home or refinancing your existing home get a copy of your credit report right now. You can do this on-line at any number of sites or you can contact any mortgage broker and they can run one for you. If you get yours on-line pay the extra cost to see your credit score. The average credit score in Missouri is 683. Your credit score is one major factor that is going to affect your rate. Look your credit report over very carefully. If there are any incorrect entries or any suspicious activities highlight the item or items. Towards the end of the report you will find instructions on how to dispute any items within the report. Take action immediately and be very thorough. Keep accurate notes of any person you speak with, get their name, phone number and keep copies of all correspondence, even the letters you send out. Also note it takes time to clear inaccuracies. Be patient and be persistent.

Step #2: Get Pre-Approved

The next step you need to take is to get Pre-Approved. The Pre-Approval process will let you know exactly how much home you can afford. Just because you are approved for a loan amount of $300,000 does not mean you have to go out a buy a $300,000 home. On the contrary, we recommend you take a more conservative approach and stress comfortable affordability. By that I mean you need to look at your overall financial picture and your short and long term financial goals. Be able to pay your mortgage, bills, and credit cards and have money left over every month to put into savings. At least have two months in reserves so that in case of emergency you could pay all your bills with no problem. By the way, the pre-approval process should be free.

Step #3: Educate Yourself

For most of us our homes are our largest investment so take the time to understand the various types of loans available and the ramifications of each. If you spend less time researching your mortgage than you do a car purchase or that flat screen HDTV, you are setting yourself up for failure and frankly, the consequences of a failed mortgage permeate throughout other aspects of your life. I see it far too often and if there is one piece of wisdom you will take from this, is that your long term financial success may very well depend on your mortgage. Once you have a basic understanding ask questions. If your broker does not explain each concern to your liking simply find a different broker that will provide you the answers to your questions.

These are only three steps you can take right now but do not procrastinate. Get your financial house in order today. You will be glad you did and your mortgage will not seem like a huge debt to be paid down every month but an investment to be proud of for years to come.

For further information on new home purchases, the sale of your existing home, for sale by owner or refinances please visit Midwest Mortgage Solutions of Missouri, at: http://www.midwestmortgageresource.com or http://www.mwmortgagesolutions.com

This article is brought to you by Tom Wurdack and Midwest Mortgage Solutions of Missouri. Tom Wurdack is a licensed mortgage broker in the state of Missouri, with over 10 years experience in the real estate industry. He is best known for his ability to place his clients in the perfect mortgage solution. Feel free to contact him at tom@mwmortgagesolutions.com

Recommend : bosch tools 12 in dual bevel slide miter saw bosch miter saw 10 acne

Mortgage Modification - Obama's Solution For the Struggling Homeowner

Mortgage Modification is available for those struggling with a mortgage they cannot afford thanks to President Obama's stimulus bill. 75 billion dollars has been allocated to alleviate the housing crisis and stem the rising tide of foreclosures. Banks are paid incentives to write reworked mortgages that provide a lower payment that homeowners can afford.

If you are wondering how long you will be able to make your monthly commitment on your mortgage, maybe this would be a great solution for you. You may already be staring at the real possibility of foreclosure, and if so, you have no time to waste. What qualifications must you meet to apply?

* You must be currently experiencing a financial hardship; something beyond your control has happened that keeps you from being able to meet your mortgage obligation. This could be job loss, divorce, death of a spouse, military service, or medical bills. Whatever the cause, there must have been a marked increase in expenses or decrease in income that were beyond your control.

* You must be currently shouldering a house payment that is more than 31% of your monthly gross income. This house payment figure reflects payment, taxes, insurance and any homeowner dues.

* Your lender must be on the government's approved lender list.

* The home must be your primary residence.

* The original loan must have been written on or before January 1, 2009.

* The loan amount cannot be more than $729,750.

* You must prove your financial condition would support regular payment of the modified house payment and that you are very desirous to do just that.

If you qualify to apply, you could obtain a lower interest rate, a longer loan term, waived late fees, and possibly, reduced principal. The goal of all this is, of course, a reduced monthly payment and the avoidance or foreclosure. Your situation could be handled by any of the aforementioned methods, but it is quite a beneficial financial arrangement.

Before you contact your lender about a mortgage modification, be sure you familiarize yourself with all the requirements and other information. This will give you a better chance of success, and give you more confidence when you contact your lender. Your home may depend on this, so do not delay. Do your homework, do your preparation, and double-check your application. These stimulus package loan modifications are available for a limited window of time only.

Click here to get the help you need to qualify for a mortgage modification.

Thanks To : best contractors table saw loan money