What homework should I do before I get a loan to buy a home?

Here are three big things many people don’t consider when buying a home: • Understand how much home you can afford. Calculate the two numbers bankers and mortgage lenders use to determine how much they will loan to you: payment-to-income ratio and debt-to-income ratio (visit Bankrate.com and click “Calculators” at the top for examples). • Understand the basics of home financing. Your ability to afford a home will be related to its price, your down payment (and the amount you’ll finance), the interest rate and points of your loan, the term and the type of your loan. Study these items and the relationship between them. • Save thousands by making your own mortgage acceleration payment schedule. Take your current monthly mortgage payment of principal and interest and multiply that number by 13. Divide that total by 12 to get your new “accelerated” monthly payment. Find a lender who you know is looking after you and your best interests like John Porter at Mortgage Masters 206-954-8736.