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Home Mortgage Mistakes
Most people who buy a home unfortunately go through a series of mistakes that had they known, they could have been spared difficult and money. If you are getting ready to house hunt, you should know about certain things that will make the mortgage process easier. After all, buying a home is a big decision and not something to take lightly. By performing a little research, you can enjoy significant savings.

The following tips will help you shop for a house as an informed buyer. This gives you more control over the situation and helps you ask the rights questions.

One of the most important things you need to do is work with a reputable and qualified lender. A strong lender will work with you no matter what your financial situation and will look at all the programs and options to ensure you get the best loan and interest rate possible. You must have a bond with your lender and trust him or her.

Some mortgage companies and lending institutions will promise you the sky. They state early on in the process that they can secure the lowest rate, get the seller to come way down on the price, close on the house with great discounts, and so on. Anything promised must be in writing and if the lender starts making exaggerated promises when it comes to price, you should be very cautious. A good lender will be able to save you money but also you need to have a lender that does not mind backing up pricing with written confirmation.

Today more than ever, when it comes to buying a home special programs are available to help in many situations. For example, if you are a first-time homebuyer or a veteran, you could very well qualify for a number of programs that would save you significant money.

The type of loan you qualify for will also make a huge difference of the amount of money involved. For instance, a conventional loan typically requires a 20% down payment, which is difficult for many people while an FHA loan has programs for as little down as 3%.

Money can also be saved when you choose between a Fixed Rate Mortgage (FRM) and Adjustable Rate Mortgage (ARM). Generally, an FRM is a better choice if you plan to be in the home for more than five years opposed to an ARM, which consists of the mortgage payment going up each month and is the better choice if you will only live in the home for a few years.

You want to get a great interest rate but what do not want to do is wait too long thinking the rate will keep down only to have the market take a jump and you become stuck with a high rate. While this may sound like common sense, it happens all the time.

After the inspector goes through the home, there will be a list of items needing to be fixed. Some of these may be minor while some could be costly. The important thing to remember is that you want to take care of problems before you get near the closing. For example, if there was a crack in the fireplace needing to be fixed and you wait until the closing to settle with the seller for $600, this could be a huge mistake. The reason is that you did not take the adequate time to get several appraisals on getting the crack fixed. You then get the appraisal after the closing only to find out that the crack will cost $1,000 to fix, not $600.

Negotiate the closing costs. Many buyers are not aware that some closing costs can be negotiated. Be sure to work with your lender to find out what closing costs you might get a discount on.

Finally, have the lender set your closing date at the end of the month. When your mortgage payment is made, it will include interest that has accrued from the prior month. When closing, the prepaid interest for the date of the loan is recorded through the end of that month, so by closing at the end of the month, the amount of prepaid interest you pay will be reduced.

 
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