How to Cope With a Changing Mortgage Market

By Sandy Flores        

Special to Excelsior

 They are undergoing constant changes in interest rates of different types of loans, so it is very important to take certain considerations to prevent circumstances that may affect us dramatically.  Previous years saw how property values ​​were increasing rapidly. Now we see how it has diminished and we note that mortgage lenders are more cautious to verify that the value of the property used as collateral is accurate and fairly valued.  Fortunately for homeowners and for those first time buyers, the key elements for a loan still apply and remain on good terms.

Here are some tips to consider about your mortgage and minimize concern:

Learn and analyze your credit report. Before you shop for any type of new credit. There are different Internet addresses where you can find information about the credit companies that can provide your personal and confidential report credit. Here are some emails: Equifax (EFX): www.equifax.com , Experian (XPN) www.experian.com , TransUnion (TUC): www.transunion.com

You do not need additional time to unpleasant surprises. Know what will the lender before the lender sees your credit report. You may need to make changes to your credit report, budget, depending on the situation in which you find yourself.

Check with several lenders about the programs, terms and interest that offer as well as the fees charged by different types of services we will provide. To do better, use the comparison method, compare all loan costs whenever possible, including rates, points, fees runners up fee, among others.

Compare costs and find out whether you need to freeze your interest, because home purchases, refinancing and / or lines of credit on your property there are changes that can occur, especially during dramatic changes in the market and it would be frozen to ensure interest. Now, are more crucial than before because the experts have the upward trend in different interest rates.

If your lender freezes the rate of interest at the appropriate time, avoid the uncertainty that although interest rates continue to increase, remain the same interest, because it is a guarantee that your mortgage lender will come with a specific interest rate, points and other terms. Note that there is a difference between the interest rate of the loan and the annual percentage rate, known as the Annual Percentage Rate (APR) is to your advantage to know both, and really know what the total costs that you are going to be incurred by the granting of the loan.

Get pre-approved for your loan with a real interest rate that guarantees in writing the amount financed, the interest rate and other loan terms as possible.  The pre-approval indicates that you are solvent enough to get a loan, leaving only know how much the lender to lend, which could be more than you could afford is arranged.

For current owners of a house, your equity control is important and it is advisable to keep it that way always active, not to exceed or deletion.  Take only cash on your equity if you need to make improvements (not all home improvements are equal), which could help to improve the value of your home.  Taking control of your equity and not allow interest rates to push him to make a hasty decision, they can push it to a loan than beneficial for you.

Consider seeking help from a financial planner or tax advisor to provide additional information to enable better management and control of your money and investments.

If there are business opportunities you can work with the equity in your property, but it is advisable to be in a cautious manner when applying for this type of loan. Education and other investments that will help improve financially, if properly analyzed, can enhance your investment. Debt consolidation can also be a very good cause to lower your monthly payments, and probably even the profit tax.

Consolidate debts carefully and tips MyFICO.com or other sources that can help prevent the lower credit score when you cancel all your accounts or many of them on short notice.

For emergencies, such as medical expenses, costs of labor, travel, consider staying with the established discipline or new proposal, keeping a credit line as a standby. Remember that in an emergency, such as job loss or decrease in income, the less likely that lenders will grant a credit line.

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