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PRECISE Tips

What's in a
Mortgage and
How Long is a Loan

What's in a Mortgage?
Payments, Principle and Interest is what you'll find in a mortgage.

Payments are made in accordance with the terms of the loan.

The amount borrowed is the Principle.

The Interest is an amount calculated using the rate (percentage) that you must pay for the privilege of borrowing.

How Long a Loan?
Most loans are stretched over 30 years, but there are 5, 10, 15, 20, and 25 year terms as well. The longer the term, the lower the payment; but the longer the term, the more interest you will pay.

Mortgage Loans - Purchasing

Precise Mortgage Lending is here ready to help you with the purchase of your new home.  Our goal is to turn your dreams into a reality you can live with making your dream come true.

Here are 7 common mistakes a person can make when getting a mortgage.

Buying a home is one of the most important and biggest financial decision most of us will ever make in our lives. It is critically important to research the types of mortgages to finance the purchase of your dream home. That's why you need to spend as much time and effort finding the right mortgage as important finding your dream home.

Knowing in advance how you plan to borrow the money you'll need to finance your new home will make the buying process a positive experience.  Knowing what you can afford and afford what you are buying.

Take a minute and look at these 7 common mistakes new homebuyers make according to a new study from Compete and Forrester Research (NASDAQ: FORR)  Cambridge, Mass., June 13, 2006, can save you time, money and aggravation. 

Mistake 1
Not knowing or checking what is on your credit report.  Knowledge makes the difference ... checking and correcting problems on your credit report can make the difference on rates and approvals.  There are three major credit reporting agencies:  Equifax (800) 685-1111 or online at
www.equifax.com , Experian (888) 397-3742 or www.experian.com , and Trans Union (800) 888-4213, or www.transunion.com. If you discover a problem with your credit report just follow the information on how to correct discrepancies.

Precise Mortgage Lending is here ready to help you gain the knowledge to make sure your credit report is correct, and if not, to help you correct it to make the lending experience a positive one.

Mistake 2
Not doing a little research on finding the right lender for you and your needs.  One of the best ways of doing this is by simply asking friends and relatives who have purchased their homes.  Ask them questions to determine if they were satisfied with their lender and why.  Then ask your lender the basic questions about interest rates, points and the cost of the loan.  Once you've done this then simply compare them and ask yourself, "Is this the lender for me?"

Precise Mortgage Lending treats you like family and like a friend making the buying experience a pleasurable one.

Mistake 3
Not getting pre-approved prior to looking for a home.  The reverse order can prove lead you to wasting effort and time when it comes to finding and buying a home. Getting pre-approved now you to find the right home at the right price range with no wasted effort. Remember there's a difference between getting pre-approved and pre-qualified. Getting pre-approved means you are prepared to move through the home buying process instead of getting pre-qualified where there is no real credit-checking.

Precise Mortgage Lending can help you get pre-approved so you can move through the lending process with ease.

Mistake 4
Borrowing either too much or too little money. Just because you're approved for a loan of $200,000, for example, doesn't mean that you must borrow all $200,000. Try to use this amount as a guideline so you'll know what is your limit.  It's easy to get ahead of yourself in how much you want to spend on a house and how much are you willing to pay monthly.  Be realistic with yourself and your limits.

Precise Mortgage Lending can help determine the right amount you can afford and afford to live with. 

Mistake 5
Failing to plan for the unexpected and not having the financial stability to support your family and expenses for three full months. Disasters whether natural, physical or fiscal should be planned for and expected. Purchasing your home shouldn't drain the family pocketbook.  Leaving a comfortable financial buffer in case of the unexpected is important in case of an emergency.

Precise Mortgage Lending is ready to help you assess your financial stability during the purchasing of your new home. 

Mistake 6
Not knowing everything you should about the specific type of loan you are considering. Knowing the differences in loan types and what the future holds with each of the loans will help you decide what is the right loan for you and your family.
 

Precise Mortgage Lending is can provide you with the knowledge you need to make an effective and logical decision regarding the type of loan that is just right for you and your family. 

Mistake 7
Not understanding what are all the cost of owning your own home.  There's a big difference from being a renter to being a home owner.  As a renter your landlord was responsible for the maintenance, upkeep and repairs of the property.  As a home owner those cost now become your responsibility and being financially prepared to manage those expectations come with home ownership. The landlord also pays the property taxes and special assessments. Once you sign the final papers, those responsibilities are all yours, and they can be expensive. So you should make a list and estimate these costs when you are figuring how much you can pay toward your home each month.

Precise Mortgage Lending can assist you in determining what you can financially afford and pay towards a home each month.

Purchasing your home doesn't have to be a difficult process.  Having a little insight in avoiding these 7 common mistakes a person can make when getting a mortgage. 

Precise Mortgage Lending can assist you to focus on the process of financing that perfect home for you and your family to enjoy.