Also, make sure to include all the income you have. If you have any equity in any stocks or other financial accounts, make sure to mention that to the broker as well.

The more money you can put down on the loan, the more likely it is that you can get approved. FHA loans usually only require 3-5% down. They are also usually open to working with people with credit problems.

Using planning calculators

Most financial Web sites have a variety of calculators that can assist you as you begin planning for new home financing. One of the more popular Web sites is http://www.bankrate.com. However, you will find that plenty of other Web sites can connect you to different planning calculators. One of these, with several calculators that can help you with anything from payments, to borrowing to insurance is Principal’s calculator Web site (http://www.principal.com/calculators/home.htm). These calculators ask for information about your finances and your situation and then provide you with carefully calculated information that can give you a general idea of what you need. They make excellent planning tools.

Understanding calculator limitations

It is important to carefully input your information. Many calculators automatically outfit the calculator with a low interest rate. It is up to you to evaluate how likely you are to get that rate. You can usually change the interest rate in the calculator to more closely reflect your actual circumstances. Another thing that many calculators do not take into consideration is your specific market. It is a good idea to consider the calculator as offering more of an estimate, or a ballpark figure. These calculators are rarely exactly precise when it comes to new home financing. But they can help you better plan for the future.

Getting the idea

Online calculators are also great for helping you visually see a number. So, while they may not always be right on, calculators can help you better understand what your new home financing is going to take. They can also help you understand how much you will need to save for a down payment, and help you run the numbers on how much a good down payment will help you in terms of interest rates, term length, and mortgage insurance.

Our Recommended Online Mortgage Companies:
 

These are the Best of the Best:
(updated )

The average rate of interest on mortgage loans continues to fall and has been under 5 percent for almost all of this past year, with this recent round of rate cuts seen as the lowest for borrowers in years. The reason, many borrowers today have bad or at least less than perfect credit scores. Still a borrower with less then perfect credit an jump through a few hoops and get a fairly decen rate on a loan.