Mortgage Geeks

Going out on house hunting when you plan on financing the purchase using mortgage loan can be quite difficult. You are faced with the problem of not being able to close the deal quickly, and most of the time you will lose the purchase to someone else paying in cash. Such circumstances are quite common; that is why you need to know exactly how much time is needed to complete the mortgage application and the funding process to prepare yourself better.

The usual amount of time needed in a single mortgage application is between 21 to 45 days. The process of clearing the fund and closing the deal is actually a lot faster — usually completed in a matter of days — once your mortgage is approved. With that in mind, you can negotiate the house you are after and inform the current owner about payment terms you can comply with. It would also be best to consult your lender and let them supply the right date.

Another great solution is to get preapproved for the mortgage. Hunting for your dream house will be so much easier since you know the fund transfer can be completed in just a couple of days.

Instead of interest rates, annual percentage rate can actually depict the total cost you are paying on your mortgage. Annual percentage rate, or simply APR, is the result of complicated calculation, taking every cost factors of a mortgage into consideration. That is why APR is more representative when it comes to finding the cheapest and most profitable mortgage deal available.

Remember that it is almost impossible to calculate an accurate APR for adjustable rate loans. The jargon will still be used by your lender, but you must ask for further details regarding the lender’s APR before using the rate to compare mortgage deals. For fixed rate mortgage loans, the APR calculation can be done more accurately. You can simply ask for details about the mortgage plan and calculate the APR yourself to get the most accurate results. Make sure you double check with the lender about hidden fees or other charges before calculating APR.

Another thing you need to make sure before doing your calculations and comparing mortgage deals is to set the right mortgage term and make sure you consider the possibility of early payoffs. With the right APR calculation results, you can compare mortgage deals and find the most profitable one easily.