Helpful Mortgage Tips

August 5, 2014

After the financial meltdown, certain lessons were learned, particularly for those who are interested in purchasing a home in the future. Many people lost their homes during that crisis, and we have learned several lessons of value that we share with you here:

• • If you are considering buying a home, determine how much you can actually afford to pay before any other actions. You must figure in added costs such as the estimated property taxes, insurance HOA costs, and repairs, as any home eventually has something that will need to be repaired.
  • Borrow only what you can actually afford to pay, and read the small print. Get help if you don’t understand the terms of your mortgage.
  • Make sure you shop around for the lowest possible interest rate, and be alert to added fees, as those fees can range into the thousands and hit you as a surprise expense.
  • Make all of your payments on time, every month.
  • Save money every month in a special rainy day fund, so if you run into trouble, you can still pay your mortgage payment. The unexpected can occur and you need to be prepared.
  • Keep your taxes and insurance payments current every month.
  • If you get any letter from your lender, don’t just set it aside. In some cases, your mortgage has been sold, and you will now have to make your payments to a different lender, so you need to read these and keep them in a file.
  • Watch out for scammers. When promises sound amazing and too good to be true – they usually are.
  • If you are having trouble making your payments, contact your lender. In some cases, the lender will work with you until you get yourself back on track.

This information is provided to you by the Milwaukee personal injury law firm, Welcenbach Law Offices, S.C. Call today to learn more about how we can help.