AEM Mortgage Minute with Deanna Daughhetee

PMI, points, truth in lending, good faith estimates… It almost seems like mortgages come with a language of their own. So my first word of advice for anyone shopping for a mortgage is to find a loan officer you trust. Keep in mind that not all loan officers are equal in experience, training and trustworthiness. They company they represent matters, too. Have they been around for years or are they brand new? Do they have a good reputation? Are they located in your city or half way across the country? Since financing a mortgage is probably the biggest shopping decision you will make in your life, finding a good loan officer with a reputable company to help is key.

Here are some other tips I’ve learned that make securing the right mortgage a little easier:

1. First and foremost, determine how much you can afford to spend. I wrote about this in the We're on the side of first time home buyers blog a few months ago, but it bears repeating: Don’t finance more than you can afford.
   
2. Determine how much cash you have for a down payment.
   
3. Determine how long you plan to live in the home you’re financing. If you’ll be there for only three to seven years, an Adjustable Rate Mortgage (ARM) will probably be cheaper. But if you’re in it for the long haul, a 15- or 30-year mortgage will likely suit you better.
   
4. That being said, take some time to familiarize yourself with the various types of loans on the market. Some will obviously be a better fit for you than others.
   
5. Understand that your credit report and debt-to-income ratio among other things will affect the rate you get.

Those are just some of the basics, but they should get you off on the right foot. You can find a lot of other great information online (loanweb.com has some excellent information). And of course, one of our loan officers would be more than happy to answer your questions on the phone or in person. Good luck!