10 Useful Tips for Mortgage Borrowers 2014

In 2014, there are a number of bright opportunities for all mortgage borrowers. The clock is ticking for them in both directions. For this reason, it is best that you all should all have well thought mortgage plans. If you wish to bag a low mortgage rate, it is recommended that you follow these tips. Mortgage rates can flow in directions you cannot imagine. You should always plan ahead of time and move strategically in order to maximize the value of your money. Here are the 10 useful mortgage tips for strategic mortgage borrowers.

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10. Documentation

Firstly, you will need to document all of your finances. It should be noted here that the new regulations and procedures in relevance to mortgages have gone into effect since January. For this reason, it is best that you maintain your records, finances, tax returns and everything else.

9. Locking the Rate

You should be agile in terms of locking an optimal rate whenever you get a chance. The rates are expected to climb till the end of this year. So if you wish to have a good mortgage, always lock in the rate in a timely manner.

8. Refinance

Most homeowners have lost their golden chance of refinancing, but it might not be too late for those who happen to be paying more than 5 % interest on their home loans. You should try to save some money by engaging in refinancing while you still can.

6. Bargaining Power

Always make sure that you make the best use of your bargaining power. Most lenders do not have a chance to exploit you in any way. With the increasing competition, your bargaining power is only going to increase.

5. Know your Rights

Buyers have a number of rights, but most of them aren’t aware of them. So always read out the new mortgage regulations and rules in order to get the best value for your money.

4. Credit Care

You should always take good care of all your credits. These days one cannot thing or expect to have a good mortgage rate while having a bad credit. The same holds true for 2014 which is a year marked by increased competition and growth of the industry. However, you will only be able to get the best deal in town by maintaining a good credit score. More specifically, your credit score should be 720 or more.

3. Control Your Spending

Lenders do not prefer to lend money to those individuals who manage to save little money after paying their mortgages. Most lenders will tell you that your debt to income ratio is not that good due to which you might have to face a number of problems. In order to get the best results, try to control your finances and spending by following a strict spending schedule.

2. Alternative Mortgage Options

Although the mortgage rates are on the rise, you still have a wide range of alternative options to go for. Homeowners who plan to keep their houses for 7 to 10 years can take advantage by choosing a specific ARM. However, if you are unaware about how long you will be keeping the house, a fixed rate mortgage might be the better choice for you.

1. Keep Calm

Mortgage rates can climb at any time. You cannot predict the movement of the market with high levels of accuracy. What you can do is to keep your calm and don’t panic at any time because it is not going to help.

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