Mortgage Expert: Financing your Home

by August 13, 2012

– Which type of mortgage is best for you?
It is important to understand the differences between the types of mortgages available to you. Once you know your short and long term financial strategy, you should educate yourself about the terms, benefits, and drawbacks of fixed and adjustable-rate mortgages, as well as FHA (Federal Housing Administration) and VA (Veterans Affairs) mortgage loans. Your personal research can go a long way. Ask yourself which type of loan you might qualify for and which types might best suit your lifestyle and ability to make your monthly payments.

How will your credit affect your ability to qualify for the loan you want?
It seems obvious—a good credit rating means a better chance of snagging a loan with a low interest rate, and a lower credit score can lessen your chances to secure that loan. But what can you do to boost your credit in advance of applying for a mortgage loan? First, don’t open new credit cards (even store accounts) or apply for other loans once you know you’re committed to home ownership. New credit accounts can affect your credit rating. Second, don’t get rid of any existing accounts with a good payment history, even if you are not using them—they can be beneficial to your credit rating. And obviously, continue to pay off existing loans or credit cards on time to avoid a tip in your credit score.

How much money do you have available for a down payment?
Think about how much money you can set aside for your down payment. There are a number of home loan programs available with little or no down payment. If you can save at least 20% of the home value, not only will your monthly payments be less than if you have a 5% down payment, but remember the more you put down, the less you owe. You should prepare in advance and consider what you can comfortably afford in your mortgage payment.

Buying a home is a process with a lot of ins and outs. The more you read about financing options, the savvier you will be when it comes time to landing that mortgage. A little time invested up front could mean a huge payoff down the line.

About Poli Mortgage Group, Inc: Poli Mortgage Group, Inc. is a privately held business founded by Edmund “Chip” and Chris Poli in 2001. Poli Mortgage, with its direct lending power, numerous banking and industry partners, highly secure internal platform & process, and best in class Customer Service, is committed to providing a vast range of customized mortgage programs to satisfy any borrower’s financial requirements. Program offerings include FHA, VA, USDA, FNMA, FHLMC, ARM, debt consolidation, home improvement, and other niche & jumbo loans. For more information please visit

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