Don’t be an April fool: These mortgage tips can help.

Spring has arrived. This means warmer weather and anxious homebuyers. However in the excitement of buying a home many forget to do their homework, and research. The result can lead to a confused homeowner stuck with a mortgage they don’t understand, and a monthly payment they can’t afford. Don’t be a mortgage fool this April. These tips can help.

1. Don’t sign anything you don’t understand.

What’s worse than taking a chance on something you’re unsure about, the outcome? When buying a home it’s important to review all the paper work you’re signing, and make sure you ask questions on anything you don’t fully comprehend. The last thing you need is to find out you signed up for something you can’t afford or didn’t want in the first place. We all know what happens when we assume so, ask, ask, ask.

2. Get a Good Faith Estimate.

A good faith estimate will give you an idea of the fees you will owe at the end of the mortgage process, also known as the closing costs. A GFE will allow buyers to budget their costs, giving them a good range of how much money they need to have once the loan is complete. Although with most mortgage lenders, a good faith estimate is standard procedure. If this is not brought up, make sure you ask.

3. Use a mortgage calculator.

The use of a mortgage calculator can help you determine what you can afford before starting the homebuying process. Buyers will be able to easily answer questions like “How much can I afford?” and “How much can I pay monthly?” Along with the Good Faith Estimate this is just another way to budget, and gauge how much you can afford when buying a home this spring.

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