Should You Get A Mortgage Now
Below is a MRR and PLR article in category Finance -> subcategory Wealth Building.
Should You Get a Mortgage Now?
Summary
It's concerning when your mortgage company goes bankrupt, a reality many sub-prime lenders face today. Despite mortgage rates being relatively low (around 5.5% - 6% for a 15-year fixed interest loan at the time of writing), surviving lenders are tightening their guidelines. So, should you consider getting a mortgage in this volatile market?
The Short Answer
Yes, you should consider getting a mortgage if you can afford it. However, there's more to it than just signing on the dotted line. Here's what you need to keep in mind.
Do Your Research
1. Educate Yourself: Learn about mortgage options and professionals. Don’t settle for the first offer. Shop around to compare terms with current national mortgage rates, which you can find online, like at My FICO.
2. Beware of Scams: Mortgage scams are prevalent. If an offer seems too good to be true, it probably is. The Mortgage Asset Research Institute notes significant fraud issues in 26 states. Be cautious of tactics like manipulating fees, dishonest appraisals, or pressuring buyers into quitclaim deeds.
3. Choose Reputable Lenders: Select a well-established lender with a strong reputation. This doesn't mean you should overlook smaller local firms. Check their credibility through sources like the Better Business Bureau and Rip-off Report, and seek out reviews from past clients. If needed, hire a lawyer to advocate for you.
Loan Types to Avoid
- Variable-Interest Loans: Steer clear of these or loans with low introductory rates that will skyrocket later. Many foreclosures result from buyers unable to manage increased payments after interest rates reset. Always read contracts thoroughly, and consult an attorney if necessary.
Consider a Mortgage Broker
- Professional Assistance: Mortgage brokers have the expertise and resources to find favorable loans efficiently. Although there’s an upfront cost, it can save you time and stress in the long run.
Conclusion
While horror stories of foreclosures are common, they shouldn't deter you from purchasing a home. Instead, view them as cautionary tales. Take the time to do diligent research and avoid rash decisions fueled by the dream of homeownership. Equip yourself with knowledge, remain cautious, and make informed choices. This approach can make all the difference in your home-buying journey.
You can find the original non-AI version of this article here: Should You Get A Mortgage Now .
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