Mortgage Lenders

A mortgage lender can be your best friend or your worst enemy. Mortgage lenders can facilitate the purchase of a house, but they can also take it away if you don’t make the payments so it’s important to know what you are getting yourself into before you sign a contract with a lender.

Mortgage lenders are usually banks, credit unions, trust companies or private companies that lend money using real estate as the collateral for repayment.

The most important figure to get from potential mortgage lenders is the interest rate. You will want to ask your mortgage lender when you can lock in your interest rate because these rates can fluctuate during the course of time you take to pay off your mortgage.

It is also essential to determine from your mortgage lender what the minimum down payment for your mortgage is. Your interest rates and loan terms may differ depending on the down payment you make and how it relates to the price of your home.

You will want to ask your lender what sort of documentation they require to prove your income and assets. Asking about this ahead of time will allow you to show up at the bank or financial institution you are dealing with completely prepared.

Your income and assets will determine how much money you can get from the lender to finance the property or home you are investing in. Your lender will probably want to limit your mortgage payments to about 28 percent of your gross income. When your mortgage is added to other debt payments these payments shouldn’t equal any more than 36 percent of your gross income.

Before you decide on a mortgage lender make sure you shop around and compare rates and terms. Maintaining a good relationship with the institution that acts as your mortgage lender will make paying off that dream house easy and painless.