Home Loan Lending - Choices

Searching for a new home loan seems like it would be the easiest thing in the world. You can just go online and within seconds have 4 quotes right at your fingertips. You can open the yellow pages and find a million and one companies and individuals trying to get your business. You could ask a friend, walk into your local bank or go to the national chain bank that might even be closer than the local bank.

So, how do you get through all the mortgage companies, find the good companies and actually choose who you want to work with? Well, it takes a little bit of work but it can save you money, time and heartache.

Step 1 - Getting a list of companies. You can do this lots of different ways. The best place to start is talking with friends, coworkers and family members that have bought a new home or refinanced in the past year or two. Did they like who they worked with? Were the really happy with their mortgage and the service they received? And the best question of all: Is their mortgage broker still in contact with them?

The last question is important for lots of reasons. If the mortgage broker is still in contact with their past clients it means they know the value of their client, don't forget about their clients after a single transaction and provide high-quality loans. (Instead of trying to sell a loan that has hidden fees, inflated fees, adjusting rates that you didn't no about or all the other problems that give you buyers remorse.)

You can also find companies on the internet, in the yellow pages and visit your bank or credit union. But referrals for a mortgage broker from people you trust is hard to beat.

Step 2 - After you have your list of companies you need to interview them. Choosing who you want to work with goes beyond interest rates and fees. Without a doubt it is important to get a good deal. But you want to trust who you are working with. The best interest rate might not save you the most money. The lowest fees could be hiding higher fees somewhere else. If you trust who you are working with and know this person wants your future business, you can feel secure with what you are being told.

You want to ask your mortgage broker a couple of questions:
- Do you charge points for your loan?
- What are the best loans for people in my situation?
- Why should I work with you?
- Do you keep my up-to-date on my loan compared to the current market after I close?


You also want to hear good questions from your mortgage broker:
- How long do you plan on living in this home?
- Do you expect any changes in the next few years? (Getting married, having children, children moving away, promotions, retirement etc...)
- Are you conservative, aggressive or in between with your investments and finances?

Asking good questions will give you an idea of your brokers views and you can decide if you trust them. Having good questions asked will let you know that your broker is working to find you the best loan and not try to fit you into any old loan.

Stay tuned for how to compare loans...

Kansas City Mortgage Group
http://kansascitymortgagegroup.com/index.htm

Reasons to Refinance

There are lots of reasons to consider refinancing your mortgage. The most common reason is to lower the interest rate on your mortgage.

Lower Your Interest Rate.
Securing a lower rate on your mortgage can bring a lot of advantages. Most notably, it likely lowers your monthly out-of-pocket expenses so your cash flow goes up. This gives you extra money each month to pay down your mortgage, save or do whatever you want with. (Who doesn't like having extra cash every month?)

Build Equity Faster.
Switching from a 30-year mortgage into a shorter term mortgage, such as 10, 15 or 20-year mortgage can decrease the amount of time it takes to pay off your mortgage. The advantage is less overall interest paid on your mortgage. The flip side is your payment will most likely be higher.

Change Your Loan Program.
Your goals can change. When you first bought your home you may have started with an adjustable rate mortgage if you thought you would be moving soon or to take advantage of a lower rate. But rates adjust and your payment changes with them. Refinancing your mortgage to get into a fixed rate, or into a different loan program, is another reason to refinance.

Credit Score Change.
As you continue to make your house payments on time your credit score will get better and better. If you orginally bought your home and had some credit issues after a year or two it is a great idea to look into refinancing. You probably got a higher interest rate with some past credit issues. If your credit has improved you might be eligible for better loan programs and better interest rates.

There are lots of reasons to refinance your mortgage. Make sure you keep your mortgage working for you and your goals instead of working against you.

You can go to our website to find out more about Kansas City Refinance or use any of our multiple free mortgage calculators to help plan your mortgage future.


Kansas City Mortgage Group
www.kansascitymortgagegroup.com

More Refinance Myths

Myth: You Must Stay in Your Home 1 Year After You Refinance

False.

When you refinance the most important factor is how fast you start saving money. If it only takes a few months for you to save money, then refinancing might be a great idea. If it will take a couple of years, moving sooner might not be a good idea.

Knowing your goals when you refinance and making sure refinancing achieves your goals will help you make sure your decision to refinance is the right one.

You can find more about refinancing your mortgage on Kansas City Mortgage Group's refinance web page.

Kansas City Mortgage Group
www.kansascitymortgagegroup.com

Refinance Myths

Making the decision to Refinance your mortgage can be very difficult. Especially with so much conflicting refinance information out there. Here is one of many popular myths:

Myth: Refinancing Into a New 30-Year Mortgage is Starting Over.

False.

Refinancing into a new 30-Year Mortgage isn't starting over. With a lower rate, lower payment and more equity the extra time on the loan can be a positive. The lower mortgage payment can increase your monthly cash flow or it will allow you to put extra money to pay down your mortgage sooner depending on your goals.

For more myths on refinancing visit Free Reports at Kansas City Mortgage Group.


Kansas City Mortgage Group
www.kansascitymortgagegroup.com

Kansas City Mortgage

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