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Obtaining a Mortgage for a Mobile Home

Posted by  on Apr 16, 2009
 
While most people think of home buying as buying a traditional home that sits in a neighborhood with a number of other homes, a mobile home is sometimes a better opportunity for some families to get started on the road to home ownership. And with a mobile home mortgage, it's never been easier to finally have a place for you and for your family. But just with any other mortgage, there are steps that you need to follow in order to get the best loan for your needs.

Why Buy a Mobile Home?

There are several reasons why many people buy mobile homes. First of all, these homes are lower in price, which allows people to take out smaller loans in order to pay for them. This also affords many families the ability to be able to pay that down payment, which then further lowers their monthly costs. A mobile home is also smaller and easier to take care of, which can be a better set of circumstances for someone that doesn't want to have a larger home to take care of. Also, because mobile homes tend to stay steady in terms of value, these are investments that aren't going to diminish significantly in value as you make payments.

Is the Mortgage any Different?

What you might not realize is that a mobile home mortgage is actually quite similar, if not the same as a traditional home loan. You will be have to undergo a process of credit checks and financial agreements in order to finally create a loan agreement that will work for you and for your needs. The only difference with these loans is that they traditionally come from the manufacturer of the mobile home itself, rather than a traditional lender or bank.

You might also need to include the purchase of the land onto which your mobile home will be placed depending on your particular situation. But this can be rolled into the overall mortgage for the mobile home, making it simple to get everything paid for with one monthly payment instead of two.

Can You Refinance Your Mobile Home Mortgage?

And just like a traditional home mortgage, you can also refinance your mobile home mortgage as necessary. This will help you reduce your overall monthly payment as well as the amount of interest you are paying on that loan. Simply talk with your lender or with other lenders to see what kinds of offers you can get and then choose the opportunity with the lowest interest rate and best payment options.

The Process of Getting a Mobile Home Mortgage

Just as with any larger loan, you will need to undergo many steps before you can get a mobile home mortgage.

Find a lender
Though typically the mobile home mortgage lender is the manufacturer of the home, you can also find independent lenders via online resources or in your local phone book. It's to your best advantage to look into all the options you have in order to ensure that you have gotten the best deal possible. You might also want to check with other lenders you are doing business with to see if they might want to help you with this financial transaction as well.

Find the lowest interest rate
By going online or talking to a financial specialist, you should try to find out what the average interest rate on a mobile home mortgage is at this time. This way when you're dealing with lenders, you will be able to see whether or not the interest rate is something that is reasonable for the area in which you live as well as for your budget.

Read the fine print and map out the payments
Where most people fail with any mortgage is in the actual loan agreement. By not considering what their payments will be in a few years, they are often setting themselves up for financial disaster or, at least, higher payments than they expected.

Be sure to ask any questions that come into your mind
When you are honest and ask as many questions as you can in the beginning, you will be ready for anything that comes up during your mortgage payment period. Even if the question seems like it would be something that you should know or that should be easy to answer on your own, ask anyways.

When it comes to a mobile home mortgage, you need to make sure that your agreement is everything that you expected. While it might seem like a simple loan process, there are many details that you need to be sure you know of in order to make sure that you are the 'winner' in this financial transaction. And surprises are never a good thing when you are dealing with this amount of money.

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