Mortgage Advice - How to choose what is Right for You

2007-03-08 10:33:40

( Financial )



Relatives or friends who have taken a mortgage can readily give you mortgage advice as expert mortgage advisers would. Expert or not, a mortgage advice is only good if it suits your needs. Here is how to pick out the best mortgage advice for you:

1. Educate yourself. Learn about the types of mortgages available and study the features of each including modes of repayment to determine what mortgage type is designed to meet your need. Brushing up on mortgage terminologies will help you when you are discussing factors like interest rate. An understanding of the basics of mortgage will give you confidence in your search.

2. Find out how much you can afford to borrow with a mortgage pre-approval. This will give you a good idea of the loan amount you can qualify for. It will also help you to establish your financial ability to repay the mortgage. Knowing what you can afford is important in deciding which advice to take.

3. Take your time to shop around and compare. This part is critical as it affects your final decision so make a careful apples-to-apples comparison of every aspect of the mortgage from interest rate, monthly payments, and payment terms to closing fees, terms and conditions.

4. When seeking expert mortgage advice, you also have to consider who is giving the advice. There are those who offer loan advice with the intention of selling their product so the information will have some bias. Get an independent financial advice or independent mortgage advice instead. Seek an independent financial advisor who works based on the guidelines of the Financial Services Authority.

5. Get all the advice you can get and do your own research. What worked for your aunt may not work for you. Do not be pressured into choosing a mortgage because a family member recommended it. The same goes for any expert advice. Do not choose a mortgage just because an expert said so. Remember that the best mortgage advice is one that fits your financial situation and needs.


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