by marblaze

Created on: March 24, 2007   Last Updated: May 20, 2007

The 10 Commandments of Getting the Best Mortgage Offer

1. Invest Time in Preparation

Six months to one year is ideal. Mortgage is a long term commitment hence tolerance for errors should be set to minimum if not zero. In this period you should be able to know the amount you intend to borrow relative to the kind of property you wanted and your capacity to pay. You must also be able to know the different mortgage schemes in the market and studies the pros and cons in relation to your circumstance. The trend of interest rate and property prices must also be looked into for they would have significant impact in decision making.

2. Build a Good Credit History

The better your financial situation is the more willing are the mortgage providers to offer their best deals. Minimize your expenses and increase your savings and this should reflect in your bank account. Doing overtime work would prove very much helpful. Generally mortgage providers use a formula in determining the amount that they can lend you by multiplying a certain factor to your annual income but if they feel that you are managing your money properly they would be willing to go beyond the standard limit. Also ensure proof of ownership of your existing properties and other assets are available.

3. Shop For the Best Deal

Do your homework. Take as much information as you can about different schemes from different mortgage providers. Take advantage of the internet. Use the search engines and look for what is being offered in the internet and read reviews about them. Set appointment with different providers and discuss your circumstance and asked if what is the scheme would suit you best.

4. Do Your Math

Having gathered the data, sit down and compare and correlates them. Some scheme would give you very good figures initially but when you actually compute your expenses say one or two years after, you might find out that other schemes are better. Consider also the impact to your repayment when interest rate changes. Usually the amount of increase or decrease of interest rate is fairly the same, for example in UK it is always .25% more or less the current rate. Be able to compare different schemes numerically say after one or two years. (If you are not good at Math find a trustworthy person who could help.)

5. Special Offer

Most lenders offer some special schemes which are not currently available in their standard rates. The offer lasts only for a certain period of time but normally they keep on coming back. When everything

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