Understanding Closing Costs

closing

You can generally break down all closing costs into two basic groups: Amounts paid to state and local governments. These include city, county and state transfer taxes, recordation fees, and prepaid property taxes. Costs of obtaining a loan or mortgage. These fees include title insurance, appraisals, credit checks, loan origination and documentation fees, commitment and processing fees, hazard and mortgage insurance and interest prepayments. There are plenty of fees that you’ll have to pay during the closing. Many of these costs are … [Read more...]

The Pre-Qualification Process

finance-bank

Pre-approval can be a very valuable step towards purchasing a home. Many home buyers get pre-qualified for a home loan early on, and then become pre-approved before beginning a serious home search. By completing your mortgage application prior to choosing a home, you can get a pre-approval letter stating how much home you can afford. Your pre-approval letter lets you know exactly how much you can spend, and it shows home sellers and real estate agents that you're serious about buying a home. This may give you leverage in the negotiation … [Read more...]

4 Tips for Buying a House in a Buyer’s Market

newhome

Now is a great time to buy a house. Prices are falling, and so are mortgage rates.  Millions of houses are for sale, and sellers are getting anxious. That's one way of looking at it.  Alternatively, you could say: This is a bad time to buy a house. Prices might be lower in a few months. Same with mortgage rates. With more than 4 million houses on the market nationally, and more being added daily, sellers are bound to become desperate. Why not wait them out? In many places, it's a buyer's market in real estate, with sellers outnumbering … [Read more...]

How to Look for Foreclosures

foreclosure

With all the news regarding sub prime lending and an ever increasing number of foreclosures and auctions, it's good to understand what foreclosures are, the reality of buying a home, and how to go about trying to accomplish it. Please read through our foreclosure information pages to get some valuable information. What is a Foreclosure? Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner's failure to comply with an agreement … [Read more...]

All About Down Payments

downpayment

An important aspect of getting a home loan is saving money for your down payment. You have many choices to make your home more affordable to you. Lenders used to require a down payment of at least 20% of the home's price. These days, however, many lenders offer flexible home loan programs allowing you to put very little down -- three percent or less of the home price. For some buyers it used to be possible to buy a home with no down payment at all, or to receive help from local down payment assistance programs. With the recent problems with … [Read more...]

First Time Home Buyers Tips – How Much Home You Can Afford

Pending Home Sales

First-time buyers are often unsure about the financial aspects of buying a home, and you may have many questions swirling in your head. How much can I afford? Do I need a large down payment? Your home price range will be determined by your income, credit history, the cash you have for a down payment and closing costs, and your debt. How much you earn compared to how much you owe will likely determine how much the bank allows you to borrow. The financial rule of thumb is: your total monthly debt service, which will include your monthly … [Read more...]

20 Reasons Why All Real Estate Titles Should Be Insured

insurance

20 reasons to get title insurance: A fire destroys only the house and improvements. The ground is left. A defective title may take away not only the house but the land on which it stands. Title insurance protects you against such loss. A deed or a mortgage on the chain of title may be a forgery. A deed or a mortgage may have been signed by a person under age. A deed or a mortgage may have been made by an insane person or one otherwise not competent. A deed or a mortgage may have been made under a power of attorney after the death of … [Read more...]

The Different Types of Home Loans

loan

With tighter restrictions and lending guidelines, many of these loan programs are no longer available, or more difficult to obtain. Talk with a lender to find the right loan for you. Adjustable Rate Adjustable rate mortgages have an interest rate that is adjusted at certain intervals based on a specific index during the life of the loan. Balloon Payment Loan A fixed rate loan this is amortized over 30 years but becomes due and payable at the end of a certain term. May be extended or may roll-over into another type of … [Read more...]

First Time Home Buyers – The Importance of Pre-approval

pre-approval

Pre-approval can be a very valuable step towards purchasing a home. Many home buyers get pre-qualified for a home loan early on, and then become pre-approved before beginning a serious home search. By completing your mortgage application prior to choosing a home, you can get a pre-approval letter stating how much home you can afford. Your pre-approval letter lets you know exactly how much you can spend, and it shows home sellers and real estate agents that you're serious about buying a home. This may give you leverage in the negotiation … [Read more...]