Managing Your MORTGAGE
LeapFrog Mortgage is your go to for top tips and information on managing a mortgage.
Today, we’ll be diving into some recurring questions for those interested in securing and/or maintaining a mortgage. Read on to see if you’ve found yourself asking any of these on your home ownership journey.
Knowing Your Mortgage Terms
Whether you’re a first timer, or a veteran at home buying, it’s always a good idea to stay up on your terms. Knowing key phraseology can keep you in the know when coming to an understanding on your mortgage. Being prepared can help you act quickly in even the most unexpected of circumstances when managing your mortgage.
For example, there’s pre-qualification. In so many words, this means that based on your first interaction with the funding source, you’re clear to push forward to the next step: pre-approval. But here’s where things can get a bit tedious. Now you’ll have to provide succinct documentation that validates your financial standing, among other things. It’s time consuming and takes a lot of focus, but in the end it’s totally worth it.
Ways To Verify You For A Mortgage
The first thing lenders will often scrutinize is your income. In all fairness, this is how lenders determine whether or not you can account for the home’s forthcoming costs. Right along with this, they’ll be examining your credit history as well.
This is a pretty big factor of importance when it comes to securing a favorable mortgage. It’s a good idea to pay down any significant debts, and/or clean up your credit before taking on a mortgage. This can help you secure better interest rates, and overall better options than the alternative.
More Verification Means
You will also need to show proof of employment. Like your income, this shows lenders how feasible it will be for you to make any future monthly payments. Any assets to your name will may also be cited for consideration.
Knowing Your Income Limitations
While your income may be able to cover a certain amount, it doesn’t mean it’s the most fiscally sound decision. A good rule of thumb is to only set aside around a quarter of your monthly income to put towards managing your mortgage. Anything more may lead to financial strains that cause the kind of problems that only compound over time.
What’s A Good Upfront Percentage?
It can be tricky deciding how much to put down on a mortgage. While you may be tempted to pay the minimum, paying ahead can sometimes allow you to avoid pesky fees on your monthly payment. It’s a fair trade off for what will ultimately save you money in the long run.
At LeapFrog Mortgage, you’ll be in good hands. Whether refinancing, or managing your mortgage, we can assist. You can browse our services to see which is a best fit for your current needs. For any other questions, reach out to us via our contact page today