Are You Ready for a Home Mortgage Loan?

Buying a home and the commitment of a mortgage can be very scary! A home mortgage is the largest debt that most Americans have in their lives. As such, make the decision to take out a mortgage, is not what most of the time first homebuyers take lightly. Not only will your monthly mortgage payments probably the largest bill that every month, but the total amount of debt realized with a home mortgage can have a stunning and sobering to the first home buyer time. I can remember the months leading to my decision to complete a loan application. I had nightmares about losing my job, not being able to keep up with my payments and finding myself homeless. And those were good nights when I could not sleep at all! Committing to a Mortgage home must not cost you your sleep to get the best rate on Your Home Mortgage Loan Home Mortgage interest rates hit record low in 2004 and have remained at a historically low level as you go to 2005. Today you can get thirty years fixed rate home mortgage loan for less than five percent, and an adjustable rate mortgage may be found under four percent if you look hard enough!, However, record low mortgage rates does not mean that must take the first offer made to guide you, even if the bass sounds. On the contrary, it means that shopping around for the best mortgage possible may be even more useful then over a period of high market. If you solicit mortgage rate quotes from enough lenders and pay attention to financial news, you might be able to guarantee a home mortgage loan at an interest rate that you will not see offered again in your life. Solicit Several Mortgage Rate Quotes In order to get the best deal for anything in America, it is important to look around. Ensuring a home mortgage loan is no exception to the rule. If you are the type of consumer who likes to walk in the first store you see and buy what you need without comparing your options, then you might be inclined to accept the first home mortgage loan offered. Thus it would be a big mistake. In order to obtain the best possible home mortgage loan you need to "shop" and compare lenders. Having a substantial down payment towards the house you want to buy and which requires a smaller home mortgage loan is another way to increase your chances of getting a loan approval. Again, this goes back to the risk for the lender to finance the loan. Many mortgage lenders require that you have a 20% deposit on the house, and then will grant a mortgage loan for the remaining 80% of purchase cost. This helps to offset the risk lender. In case you are unable to keep up with monthly mortgage payments and defaults on the loan, the creditor will have a better chance of recovering his money through foreclosing and selling the home if the loan has a lower percentage of the value of the housing market. So if you can save 30% or more towards a down payment on your home, you will be to reduce the risk to the lender and increasing your chances of getting a loan approval. You have to accept an interest rate on Your Mortgage Loan If you want to get a mortgage despite your bad credit history, and you do not have a substantial down payment saved, you may need to accept a loan at a rate of interest than than what is offered to low-risk borrowers. This is because the lender will want to be compensated for his risk level increased. This should not necessarily prevent you from taking the loan, though. If you secure the guides are diligent and make timely payments, after paying for some 'on it will improve your credit history. Then you can refinance the mortgage at a later date, with a 'best bid price. Michael http://www.atozonline.com For more articles by Michael Contarini Contarini, you can go to http://www.atozonline.com