Hall Lending Group was created by Hope Hall with one mission in mind: to provide customers with the best home loan experience possible. For nearly two decades, we have been helping families meet their goals of home ownership with the best interest rates and loan programs available. We care about more than just your home loan. We take pride in making lending easy. We understand that family is important and that you want what is best for them. We make lending easy because you want to be the hero that gave your child their own backyard. We make lending easy because you want to spend more time with your family and less time on paperwork. We make lending easy because YOUR TIME MATTERS.
When shopping for a home in Cedar Rapids, Iowa City, Waterloo and the surrounding areas in Iowa, it is always a good idea to know how much home you can afford. You will need to have a good idea of what your monthly bills amount to before purchasing a home. The amount you have left after paying your monthly bills is considered your disposable income. This is where your grocery shopping factors in and anything else you may want to purchase at your own discretion. When you are in the market for a new home, you will likely want to have a tight grasp on your disposable income. Making a lot of senseless purchases is not part of good financial sense. Eating an occasional meal out is fine, if you are not doing it too frequently. However, you may want to hold off on buying yourself a new wardrobe or even a new car until you have your mortgage payments worked out.
After taking a look at your disposable income, you need to ask yourself if it is possible for you to take out a monthly mortgage or home loan. This is where a mortgage calculator may come in handy. It can estimate your mortgage payment with taxes and insurance based on the financial information you enter about your potential home purchase. You will likely be asked to input the price of your potential home, the amount of your down payment and details about your home loan, including the principal and interest as well as other details about your potential purchase.
In a perfect world, the mortgage calculator can give you an accurate estimate of how your mortgage payments will break down and the schedules when they are due. However, we all know the world is less than perfect, especially when you are trying to make a large purchase. Once you get your mortgage lined up for your new home, what would happen if your refrigerator or even your furnace decided to quit? If you were to find out that one needed to be replaced, would you be able to replace it comfortably? Do you have an emergency fund in place or at least a plan in mind? Where would the money come from to make the replacement purchase? How would it affect the mortgage schedule you have lined up? Would you be able to make the payments according to the set schedule? Missed mortgage payments will not sit well in your financial future, especially if you plan to move. Missed mortgage payments could even cost you your new home, if you allow too many of them to pass by.
Yes, a mortgage calculator can help you put a plan into place for your home, but it cannot accurately predict the things that will happen in your everyday life. Before you sign any agreements to put your mortgage into motion, perhaps you should sit down with a financial planner. Do you have an idea regarding when you would like to retire? Do you have any investment plans in place that will allow you to retire comfortably? Do you know how much equity is currently available in your soon-to-be new home? Is it a fixer-upper? Will you have to invest a lot of money into it before your equity will grow? Knowing the answers to these questions is important before you lock yourself into a mortgage agreement that you are not sure you can keep. Lenders want to help borrowers who are good risks. Homeowners who have successfully paid off their first loan are likely to come back to try to get an additional loan. Granted, most people do not have two mortgages that they must pay each month, unless they own two houses or are paying someone else’s mortgage or loan. However, people do want to keep their borrowing options open because you never know what the future may bring.
Take the figures you entered into the mortgage calculator to your financial planner. Find out if you have figured everything correctly about the finances of your soon-to-be new home. What about property taxes? Do you have enough information from the seller or the realtor? Your mortgage is not the only cost that comes with your new home. At some point, you will have to pay your property taxes. What will that be like compared to your mortgage and your other financial obligations? Do you have everything figured out correctly, or will you end up scrambling to cover what you owe before it is due? The more steps you can take to fill in the gaps in your financial picture, the better off you will be in the long run. Failure to pay all your monthly bill obligations or even your mortgage or loan can be detrimental to your credit report and your ability to make large purchases in the future.
Living within your means is one of the most responsible things a homeowner can do. Being able to make ends meet is the first key to measuring your success. If you are able to live without worrying about money and how the bills will be paid, you are well on your way to happiness. When you are browsing potential mortgage lenders, do not discount the idea of using a mortgage calculator along the way. Sometimes the only way to give yourself a heavy dose of reality is to see the numbers in black and white. Seeing is believing. If you can see that your income and disposable income will go a long way into completing your mortgage agreement, you will enter the home purchasing process with a sense of pride and confidence.
Using a mortgage calculator can really put your financial situation into perspective. Each part of the calculator has a corresponding part of the home purchasing process. While it does not ask for any of your income or debt information, it does ask for all the figures that go into buying a new home. You will see what goes into making a mortgage, including fees, taxes, insurance and more. You should be able to visualize whether you will be able to manage your mortgage payments along with your monthly bill obligations. The calculator itself is not a miracle worker. You cannot fudge set figures to make it a more convenient situation for you. The cost of the new home is set, and the seller has an acceptable price in mind. No amount of pleading or negotiation can convince the seller to change the selling price. This also means you will not be able to change the down payment that may be required, depending on the type of mortgage or loan you have chosen. The governments or local municipalities are not likely to adjust your tax rates because they are not convenient for you. Take every figure you are aware of and plug it into the calculator as is. This is the only way you will get a true idea of what it will cost you each month to live in the house you have chosen.
The reality is that the only way to fudge the numbers into the calculator is if you planned to make double payments to pay ahead. Even if you cannot afford to make double payments, any additional money you can add to the monthly payment will help bring down your balance quickly. No lender is going to refuse additional money being added to their suggested minimum payment. They will welcome it with open arms, and it may even go a long way to improve your credit score, even if it is currently in good shape.
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