What Are Some Tips For Filling Out A Mortgage Application?

What are some tips for filling out a mortgage application? When beginning your home loan process, honestly answer any questions on your mortgage application. The first tip is to be as honest as possible....

The first tip is to be as honest as possible. Towards the end of that application, we do further research as far as reviewing their credit and reviewing the mortgage history as well. Everything is going to come out in the long run and we are going to find out about everything. So, personally, being honest will allow us to get this process completed at a quicker pace. The fallacy that America is under is that the interest rate is the most important thing. When, in all reality, the interest rate is not the most important thing. It's obviously important, but it is not the most important thing. I think everybody will agree that the most important thing is your monthly payment. Here's an example that I like to give: when you go to the grocery store, you don't buy groceries with rates. You buy groceries with money. If you are worried about just the interest rate on your mortgage loan, technically you can have a higher mortgage payment with a lower interest rate. Or you can have a higher interest rate and the lower payment. It really just comes down to how you structure the loan and that's what a lot of people are confused about. They don't really understand. It's not necessarily their fault either if they haven't been educated on how to structure a loan and how everything works. Also, every time when we flip on the TV, no one really speaks about monthly payments, they just speak about interest rates. So everybody's attention is drawn towards the interest rate, interest rate, interest rate.

Once we sit down with our clients and educate them that the interest rate is not the most important thing, it's really the monthly payment, then the client really starts to understand and then they feel more comfortable. That's one thing that we really try to do here. We really advise them financially as to what's the best thing for them to do. We generally give them several different options and advise them about which one is going to save them the most amount of money. But obviously, the ultimate decision is up to the consumer.

© High Speed Ventures 2011