To find loan program that is right for you, your mortgage consultant will need to evaluate your monthly household income, current assets and savings, as well as any monthly obligations you may have for credit card payments, car payments, child support, etc. These prequalification factors, along with report of your credit score, will determine how much house you can afford and what interest rate you will pay for financing. It is also important to let your mortgage consultant know what your future goals are, because this will help narrow down which loan option is best fit for your long-term needs. There are many different types of loan programs available, including “low” and “no” down payment mortgage programs. These types of programs require borrower to provide less than 3 percent of loan amount as down payment. FHA lenders rule that mortgage payment, including principal, interest, taxes and insurance (PITI) should not exceed 31 percent of your gross income, and PITI plus other long-term debt (car payments, etc.) should not exceed 43 percent of your gross income.

Housing is an expense that takes a big bite out of monthly budget. If you are a renter and feel that “home” is more than just someplace to hang your hat, think about advantages of purchasing real estate. It may be time to take step into building your personal net worth as a home owner.

It is highly unlikely that a qualified loan originator whose business is based upon referrals will use unscrupulous tactics such as this to get new customers in door!

Once you have found a mortgage consultant that you feel comfortable working with, lay your goals out on table because it will have a tremendous impact on choosing a loan program that meets your specific needs. One of most important factors to consider is how long you wish to borrow money for. For example, if you know you will only be in home for five years, it wouldn’t make sense to opt for a 30-year loan program or pay points up front to secure a lower interest rate. You would not be in home long enough to benefit from such action.

Your mortgage consultant should be able to narrow down a selection of programs based on information that you have provided, and present you with an easy-to-read spreadsheet that clearly defines viable options for your interest rate and amortization schedule, monthly payment and any potential savings you may realize by paying points up front.

Moreover, a reputable loan originator will not hesitate to share this information with your tax consultant or financial planner so they may offer additional feedback on your behalf.

Home ownership imparts a rewarding vehicle for building wealth and a strong financial future. The mortgage consultant that you choose should be there not only when your loan closes, but should also provide you with ongoing service to assist you in managing that debt over time.