Here are some things to consider as you review, evaluate and pick a loan program. When purchasing or refinancing a home, you may want to consider the following and make sure you talk to your mortgage consultant about these things:

• Here are the Steps to Buying a Home!



• What monthly payment do I really want to make? How does this compare to the payment I can qualify for? Many loan offiicers and real estate agents never ask their prospects the question: "what is your monthly payment comfort level?" This is one of the first questions we will ask you. We feel it is important for you to consider what monthly payment you are comfortable making. We see it all the time where the monthly mortgage payment that you can qualify for is greater than the payment that you actually want to make. Finding this out after the seller accepts your purchase offer can cause some real problems for everyone involved in the transaction - mainly you.



• Your mortgage payment is made up of several components. In most cases the biggest part of your payment will be the principle and interest on the money you borrow. These payments are determined by the amount of time your loan mortgage is set up to be paid back (we call this amortization schedule), your "locked" interest rate, the real estate taxes on the home (these are set by your local and state governments), a home owners insurance policy (this is in case you have a fire and in some cases you might have flood insurance), and a home owners association (in the case that the home you are looking to purchase is a condominium, town home, or a "planned urban development" home - PUD home). Make sure if you are looking at what your payments are going to be when these extra monthly payments are included.



• How long do I want to stay in the property? 1-3 years, 3-5 years, 5-7 years, greater than 7 years.



• Am I expecting any pay raises in the next 1-2 years, will they continue after that?



• What are my financial goals? improve monthly cash flow, maximize retirement savings, maximize education savings, live on one income, create a comprehensive financial plan, maximize investment or savings contributions, maximize my asset portfolio performance, live comfortably on a fixed income, create a 6-12 month cash reserve account?



• What is most important regarding my mortgage financing? determine maximize price and payment I qualify for, determine best price and payment for my income and lifestyle, what is my payment comfort level, what are my specific downpayment and closing cost budgets, avoid mortgage insurance, sell/pay down/pay off/refinance my home without prepayment penalty, include improvements to home in financing, set up a home equity line of credit.