The truth is that many financial institutions are legitimate. They offer their customers competitive loans for a house mortgage. However, you should always be on the lookout for shady lenders. Many of them exist especially on the internet. These fraudulent lenders are ready to pounce on any folks that do not their homework right when shopping for a house. Just because a firm advertises extremely low interest rates does not mean you have to rush running to them. There is utmost need to see the big picture. Many of the low interest rates advertised online are a recipe for disaster. These firms fail to disclose plenty of information.
So how do you know that you are dealing with a scam lender? Well be on the lookout for the following telltale signs:
- The interest rate is seemingly higher or lower than normal
- You are asked to sign blank documents
- You are told to make false statements
- You are pressured to borrow more than you can afford
- Your lender or broker does not have any solid references
Having plans to purchase a house can be more than exciting. With recent reports claiming that the real estate market will continue to perform excellently this year and beyond, being an informed house purchaser can be quite rewarding. As you prepare to make a purchase, it is important to be aware of a number of things. Some of these are:
- Understand exactly what you are signing
- Make sure you learn the basics
- Never let emotions drive your buying decisions
One thing is for sure – you don’t have to be part of the awful statistics of the many men and women making uninformed decisions when it comes to buying a house. Follow the below guidelines and you will surely settle for the best deal:
Know Your Limits – How Much Can You Afford?
This ought to be your maiden step when shopping for a house. Therefore, refrain from wasting your precious time or that of your real estate agent by looking for houses that you obviously cannot afford a mortgage on. You should always start by having a small meeting with yourself and establish the limits to work with. This way, you will save plenty of effort and time. Based on your credit and income, let your real estate broker help you determine the houses to settle for.
When doing so, also factor in things such as insurance, utilities, maintenance, property taxes and homeowner-association dues. You should total up all these mentioned costs. To ensure you are on the safe side, you can do an experiment. In this experiment, pay your apartment rent. After this, set aside some money that equals the difference between your rent and the expected homeownership costs. This helps you get used to remitting payments. Home calculators available online can be of great help if you want to arrive at a figure of how much your loan will be.
By doing the above, you’ll surely settle for the best house. There is no doubt about that.