Mortgage Tips & Advice
Expert tips and strategies to help you navigate the mortgage process, save money, and make informed decisions about your home purchase.
Preparation Tips
Check Your Credit Score Early
High PriorityReview your credit report at least 6 months before applying. Dispute any errors and work on improving your score.
Save for a Larger Down Payment
High PriorityAim for 20% down to avoid PMI. Even 10% down can save thousands in insurance costs.
Pay Off High-Interest Debt
Medium PriorityReduce your debt-to-income ratio by paying off credit cards and other high-interest loans.
Gather Financial Documents
Medium PriorityPrepare W-2s, tax returns, bank statements, and pay stubs. Lenders will need 2+ years of history.
Mortgage Shopping
Compare Multiple Lenders
High PriorityGet quotes from at least 3-4 lenders. Compare rates, fees, and closing costs.
Understand APR vs Interest Rate
High PriorityAPR includes fees and gives you the true cost. Compare APRs, not just rates.
Ask About Rate Locks
Medium PriorityLock your rate when you find a good one. Rates can change daily.
Negotiate Closing Costs
Medium PriorityMany fees are negotiable. Ask lenders to match or beat competitors' offers.
Home Buying Process
Get Pre-Approved First
High PriorityKnow your budget before house hunting. Pre-approval shows sellers you're serious.
Don't Skip the Inspection
High PriorityA $400 inspection can save you thousands. Always get a professional home inspection.
Consider Future Resale Value
Medium PriorityBuy in good school districts and avoid homes with major issues that will be hard to sell.
Factor in All Costs
Medium PriorityInclude property taxes, insurance, utilities, maintenance, and HOA fees in your budget.
Interest Rate Strategies
Monitor Rate Trends
High PriorityFollow economic news and Federal Reserve announcements. Rates often move with economic data.
Consider Points
Medium PriorityPaying discount points can lower your rate. Calculate the break-even point to see if it's worth it.
Time Your Application
Low PriorityRates can vary by day of the week. Tuesday-Thursday often have better rates.
Improve Your Profile
High PriorityHigher credit scores, larger down payments, and stable income get better rates.
Refinancing Tips
Calculate Break-Even Point
High PriorityDivide closing costs by monthly savings. Only refinance if you'll stay long enough to break even.
Consider Your Timeline
High PriorityIf you plan to move soon, refinancing may not make sense due to closing costs.
Compare Loan Terms
Medium PriorityA 15-year loan has higher payments but saves thousands in interest over time.
Don't Cash Out Unnecessarily
Medium PriorityCash-out refinancing increases your loan amount. Only do it for high-value improvements.
Insurance & Protection
Shop for Homeowners Insurance
High PriorityCompare quotes from multiple insurers. Bundle with auto insurance for discounts.
Understand PMI
High PriorityPMI is required with less than 20% down. It can be removed once you reach 20% equity.
Consider Additional Coverage
Medium PriorityFlood insurance, earthquake coverage, and umbrella policies may be worth considering.
Review Coverage Annually
Low PriorityUpdate your coverage as your home value and needs change.
Ready to Apply These Tips?
Use our mortgage calculator to see how these tips can impact your monthly payments and total interest costs. Start with a realistic budget and work your way up.
Additional Resources
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