Home Loan Basics :
- Fed Rate Cuts
Do Not Equal Lower Mortgage Rates - Many mortgage applicants are calling their mortgage
representative and expecting a lower interest rate. Others
who have been waiting to refinance are puzzled as to why
mortgage rates have not moved lower during recent 5 Fed rate
- APR Calculation Table - APR Calculation
Table; Fees Paid by Borrower; Prepaid Finance Charges etc.
- APR Can Cost You -
A borrower who is shopping for the best mortgage rate can easily be seduced by
low rate offers that are accompanied by low Annual Percentage Rates (APR). Federal
Law requires that APR be disclosed along side the actual interest rate…
- 30 Year Mortgage Rate History - Monthly Average Commitment
Rate And Points On 30-Year Fixed-Rate Mortgages Since 1971
Find out How Much Mortgage Can You Afford
You can save yourself a lot of wheel-spinning if you take a minute
to figure out how
much mortgage you can afford. Generally, a
lender will want your monthly mortgage payment to total no more
than 29% of your monthly gross income (that's your monthly income
before taxes and other paycheck deductions are taken out.) You
also need to consider current loan interest rates. The lower
the interest rate, the more expensive the home you'll be able
to afford. Follow our tips and use these simple calculators to
see how much you can afford in a mortgage payment.
Create Your "Wish list"
Make your wish list. Focus on the features you want in a home: 2
bedrooms or 3? 1 bath or 2? Garage or no garage? Knowing what you're
looking for will help you focus your search. And it will help your
real estate agent too.
Choosing Your Real Estate Agent
You'll want to start searching for an agent as soon as you decide
to buy a home. Talk to several and find someone you think you'll
be comfortable working closely with. Many of your friends and relatives
have probably bought and sold their homes through agents. Ask them
who they used and what their experiences were. You can find out which
agents specialize in the kind of home or the area you want by looking
in the Yellow Pages or your local newspaper's classified real estate
ads. Or drive through neighborhoods and note the names of agents
on "for sale" signs. When you talk to prospective agents,
ask questions about the areas and types of homes in which you're
interested. Do they seem knowledgeable? Most important, is their
personal style a good fit with your own?
Mortgages and Homebuying Programs
Many different kinds of mortgages are available to you. Read
about them, and make sure you understand the pros and cons of each. Suzi
Boyle and your real estate agent can help you.
Shopping for a Home
Now you really begin house-hunting. Your real
estate agent will be able to find listings for you, based on your
wish list. But don't stop there! You can do your own looking, and
then ask your agent to show you the house. Start with the Internet.
Pick up real estate flyers at local grocery stores and convenience
stores. Read the real estate sections of your local newspaper.
Drive around neighborhoods that interest you and write down addresses
where there are "for
sale" signs. Go to open houses. Try everything!
Building a Home
If you want to build a new home, there are other things you need
to know before you begin. Learn about construction standards and
about buying land, so you know your rights.
- Ask about Minimum property standards
- Do you want to buy land
for a home?
Manufactured homes can be a great alternative for first-time homebuyers.
Again, it's good to know how the laws protect you.
Rehab a Home
You may want to consider buying a "fixer-upper." If so,
there are federal programs that can help you finance your repairs.
When you make an offer on a home, it's a good idea to make your
offer contingent on a home inspection, conducted by an independent
authorized inspector. You will have to pay for this inspection yourself,
but it could keep you from buying a house that will cost you far
more in repairs, down the road. If you are satisfied with the results
of the inspection, then your offer can proceed. If you aren't,you
may want to negotiate, asking the seller to pay for certain repairs
or asking for a lower price.
Your lender will require you to get an appraisal of the house you
want to buy, to make sure it's worth the money that you're borrowing.
You may select your own appraiser, or you may ask your real estate
agent to help you take care of that.
Lenders require that you have homeowners insurance, to protect both
your interests and theirs. Like everything else, be sure to shop
around for insurance that fits your needs.
Settlement or Closing
Finally, you've gone through the whole process, and you're ready
to go to "settlement" or "closing." We know you'll
be excited, but be sure to read everything you sign!
Looks like you're ready to move. There's a lot to consider as you
plan your move. The good news is that there's lots of help.