Rolling with the Changes in Home Financing

Rolling with the changes in Home Financing

Our world is much different than it was 20 to 50 years ago when our parents were busy blazing a trail to the American Dream, and Home Financing is no exception to the changes. With swings in the Economy and Real Estate market in America, the Information Highway coming of age, and the shift in the Socio Economic makeup of our Consumer, Banks and Finance Companies are on a fast paced road to stay abreast of the demands of Home Buyers and competition in the industry.

Remember when our parents had one job, one car, a savings account, Mom stayed home, and one of their biggest financial goals was to pay off the mortgage? They knew Social Security was going to provide some retirement as well as the employer they had been working for the last 30-40 years. That has all changed. In most families today, both parents work, or a single parent juggles the household, sometimes with more than one job; we have two cars, credit card debt, and little savings. Most of us will have a mortgage when we retire, we will have changed jobs 7 times with retirement funds being uncertain.

Consider all the options you now have with Home Financing. Our parents went to their local home town Bank or local Savings and Loan to obtain a mortgage. They did business with their banker on not much more than a handshake. We now have options to go to our local lenders; Banks, Credit Unions, Brokerages; or shop online for our Mortgages. The mortgage products have changed as well. In addition to the traditional Mortgages of old, we can choose an Adjustable Rate Mortgage, Fixed Rate 30, 40 or 50 year Mortgage, Payment Option Mortgage and Equity Loans.

Most of us will stick with someone whom has served us well in the past or whom has been referred to us from a trusted friend or advisor. It may pay to shop around for the best deal. Be cautious of online companies whom you don't know a lot about and don't have to face you at the closing table when things do not go as expected. Many consumers may find that fees or rates were not disclosed accurately or find there are ‘hidden' costs in the incredible offer that was made to you over the phone or the internet. Sitting down with a loan officer you trust and visiting various Mortgage Financing Options makes a lot of sense when it comes to developing financial goals. There are so many products that can help you achieve those various goals.

Take the time to sit down with your lender to discuss your needs. Did you know there are various programs for Teachers and Public Workers? Has anyone offered to help you repair your credit or simply help raise your credit score? Has anyone talked with you about various Mortgage Insurance Options or Secondary financing? Did you know that there is money available for down payment assistance? As a self employed person, have you reviewed your business plan and considered how your mortgage is financed to help you meet your long term objectives?

Ask your Mortgage Professional to explain and explore your options. Consider your financial goals when choosing a Mortgage product and understand industry standards when shopping fees and rates. Work with a local lender and with someone whom has your best interests in mind.