How do you get a good mortgage ?

Everywhere you look there are appalling stories about the credit crisis and financial downturn, including the tightness of the mortgage market. So how do you get a good mortgage in a atmosphere of financial crisis? Here are some guidelines for getting the right mortgage in the today's financial market.

One of the main factors in getting a good mortgage agreement is your credit rating, so you should find out what yours is before checking out the mortgage market. Your credit rating is a record of your credit transactions, such as mortgages, credit cards, loans, and payment plans. If you pay all of your bills on time and make the full amount of the payments, then you will have a good credit rating. If you have had financial difficulties or have large amounts of financial obligations outstanding, then your credit rating may be average or inferior.

Investigate Interest Rates

Make sure to research interest rates in the location in which you are buying. Even if you choose to get help with sourcing a mortgage, it is useful to have this information. Use an online calculator to figure out how much you can afford to borrow. Most calculators will ask you to give your income and expenses and will work out an approximate figure. Knowing how much you can borrow tells you how much you can spend on the house you want to buy. Then, you will not consume time looking at properties that are outside of your budget.

Mortgage Rates

Right now, if you meet the requirements the fixed mortgage rates are very low. Most lenders will not give you a loan unless you have 20% down. A fixed rate mortgage establishes the rate for the full term of the loan. During the length of the loan the rate will not increase or fall. It is probable that interest rates will rise higher than the fixed rate you can get now, so that is a advantageous option. Interest rates on adjustable rate mortgages go up and down with fluctuations in the economy. So many people were devastated by them that banks do not even offer them currently.

When choosing a mortgage check out points, which are pre-paid interest on your loan. If you intend to take the entire term to repay your mortgage, then points may be helpful. Also, be prepared for closing fees and other unanticipated fees on the mortgage. These can really mount up, and it is worth comparing prices to find the agreement with the lowest fees. Lastly, you may get assistance with sourcing your mortgage from a broker. Be sure to ask for recommendations so you can choose a professional with a good reputation