Should You Get A Mortgage Now

Should you​ Get a​ Mortgage Now?
It’s never a​ good sign when your home loan company files for bankruptcy .​
Sadly,​ that’s just what’s happening to​ many sub-prime mortgage lenders these days .​
Mortgage rates are low right now (about 5.5% - 6% for a​ 15-year fixed interest loan at​ the​ time of​ this writing),​ but the​ lenders who managed to​ stay afloat are tightening their lending guidelines .​
Should you​ get a​ mortgage while the​ housing market is​ so volatile?
Simply put,​ yes,​ you​ should get a​ mortgage if​ you’re in​ a​ position to​ afford a​ house .​
But it’s not that simple .​
Before you​ sign that dotted line,​ you​ need to​ consider some things.
First,​ do your research .​
Learn about mortgages and mortgage professionals .​
If you​ get a​ good offer,​ don’t assume that it’s the​ best you’ll get .​
Shop around and compare offers .​
You might find that that initial offer wasn’t as​ great as​ it​ seemed .​
Compare the​ terms you’re offered to​ the​ current national mortgage rates .​
You can find these online at​ My FICO .​
By familiarizing yourself with what’s out there and with what can be expected,​ you’re protecting yourself from scams.
Mortgage scams are a​ problem,​ but they can be avoided .​
Just remember that mortgages that seem too good to​ be true probably are .​
The Mortgage Asset Research Institute reported that 26 states have serious problems with mortgage fraud .​
Some tactics include pressuring home buyers to​ file quitclaim deeds; buying homes at​ low prices and re-selling them for profit through dishonest appraisals; and manipulating fees and penalties to​ re-classify performing loans as​ defaults.
When choosing who you’ll do business with,​ be sure to​ select an​ established business with a​ good reputation .​
This doesn’t necessarily mean that the​ largest lenders will give you​ the​ best terms; don’t forget to​ look for local firms,​ too .​
Check them out online through the​ Better Business Bureau and Rip-off Report .​
Ask to​ speak with previous clients,​ or​ solicit opinions through online forums or​ classified ads .​
If you’re very concerned,​ you​ can always hire a​ lawyer to​ represent your best interests.
Also,​ don’t accept a​ variable-interest loan,​ or​ a​ mortgage with a​ low-interest introductory period .​
That period won’t last forever,​ and your interest rates – and monthly payments – will likely soar when it’s over .​
Look at​ how many homes have been foreclosed because buyers couldn’t afford the​ payments after their interest reset at​ a​ higher rate .​
Carefully read everything you​ sign,​ and demand clarification for any vague or​ unspecified points .​
It wouldn’t hurt to​ have an​ attorney look it​ over,​ too.
Finally,​ you​ should consider using a​ professional mortgage broker .​
As pros,​ they have the​ knowledge and resources to​ find great loans quickly and easily .​
Using a​ broker will cost you​ some up front money,​ but will save you​ time and stress.
We’ve all heard the​ myriad horror stories about families losing their homes,​ houses that were foreclosed and auctioned off for insultingly low prices .​
This should not scare you​ away from buying a​ home,​ but it​ should serve as​ a​ cautionary tale for anyone looking to​ secure a​ mortgage: take your time,​ and do your homework .​
If you​ get caught up in​ the​ dream of​ owning your own home,​ you’re more prone to​ take the​ first good deal that comes along .​
Don’t make yourself vulnerable to​ unscrupulous lenders .​
Instead,​ arm yourself with knowledge and keep your head about you​ .​
Taking your time to​ think things through could make all the​ difference.

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