Buying a home is a part of most people's lives. It fits right into our finances with saving for retirement and health insurance. It is simply a part of our finances.
You can turn to a lot of places for advice when buying a home. You can talk to a realtor, a mortgage lender or even your family. But there are some tried and true personal finance laws that fit the home-buying situation perfectly.
Rule 1: Do your homework
It used to be that you were told to learn as you go. After all, the saying says that you only learn by making mistakes. Not true. Don't feel as if you need to just go out and jump into a home because that is what you are expected to do. Take some time and do your homework.
If you don't have the money and the time to devote to a home, then buying is not for you. Look at your finances, job situation, family life and goals when deciding what and when you want to buy. Don't forget that owning a home is a big deal. You will not only have monthly payments, but you will also have insurance premiums, property taxes, utilities and possibly even PMI to tack onto the cost. Renting could be a better choice for right now.
Rule 2: Buy what you need
If you buy something just to tide you over, you might find that it doesn't last long. Advisors will tell you to buy quality and for the long term when it comes to big ticket items. The same goes for a house. Yes, buy a small starter home if that is what you want and what your finances dictate. But unless it is a roomy home at a good price, you may have to move fairly soon. And all of the commissions and closing costs could be avoided by simply buying what you need now.
Rule 3: Fixed-rate is the only way to go
I know that you may be thinking that adjustable rate mortgages have the potential to go down in interest rate. Well, they can. But what will you do if it goes up? A fixed-rate mortgage gives you the security in knowing that what your payment is today, it will be tomorrow and twenty years from now. It's not going to go up and throw your budget in the pit. If you have extra cash, go ahead and add it to your payment and get rid of that mortgage early.
What is the perfect term? It depends on your finances. But remember, you will own your home quicker, have more equity faster and pay less interest over time if you pay off your mortgage in 15 years versus 30 years.
Rule 4: Have a backup plan
If you haven't noticed it now, you will. Things go wrong. Often. They just do. And you will be glad you have a backup plan when you are down to your last penny. I see nothing wrong with taking out a equity line of credit and not using it. Just tuck it away for an emergency. Don't touch it until absolutely necessary. Or better yet -- forgo the temptation and make sure that you save some emergency money. You will need about three months worth of expenses for safety's sake. But if you aren't a good saver, your home equity will be a good backup plan.
Rule 5: Take your time
Like rule number one, you should simply take your time and have everything lined up before you jump on in. Take the time to search for a home. Look at the neighborhoods, the market and the homes that interest you. The more you know, the better you will be at negotiating. There is no big hurry. There are plenty of homes out there. Dream homes are a dime a dozen, believe me. If they weren't, so many people wouldn't own homes.
It all boils down to being wise in your decisions. Look at your finances, goals and needs before you consider anything else. These factors are the necessities. The rest is just nice. By using your financial sense, you will find that homeownership is a natural part of life.
Martin Lukac, represents http://www.RateEmpire.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies! Visit http://www.RateEmpire.com today
Article Source: http://EzineArticles.com/?expert=Martin_Lukac
Tuesday, September 25, 2007
Home Buying Tip - How to Avoid Common Mortgage Problems
If you plan to buy a home in the near future, you will likely be applying for a mortgage as well. After all, home buying and mortgage loans go hand in hand (unless you've just won the lottery).
The key to a smooth mortgage application process is to understand the most common mortgage problems, and then work hard to avoid them. So what are these common problems when applying for a mortgage, and what can you do to steer clear of them?
Problem #1 - Too Much Debt
When you apply for a mortgage loan, the lender will check your debt-to-income ratio. Basically, they will want to see how much money you make (next item) compared to how much you owe. The rule of thumb is 20%. Mortgage lenders prefer that your overall debt be no greater than 20% of your net income. If your debt is too high as compared to your income, it sends a signal that you cannot mange your finances. This can hurt your chances of qualifying for a loan at a good interest rate.
Possible Solutions
The solution here is simple. Reduce your debt. I know it's not always that simple, but if you want to qualify for a good mortgage loan, you'll need to have your debt under control. So the ideal scenario is to pay off as much of your debt as possible. If you are unable to do so, you could always shop for a more affordable home that would require a smaller loan.
Problem #2 - Not Enough Income
If you apply for a loan that a lender thinks you can't afford, your chances of being approved for the loan are slim. This may actually be a good thing, as it will prevent you from amassing more debt than you can cover with your income, which can lead to bigger problems like foreclose.
Possible Solutions
An obvious solution, of course, is to increase your income. But this is easier said than done. Another option would be to put more money down up front. If you make a down payment higher than the 20% average (say, 25% or 30%), you could qualify for a mortgage loan that doesn't require income verification. Just realize you'll probably pay a higher interest rate with this type of loan. A final option would be to get a co-signer, such as a parent or other relative ... somebody with good credit standing and favorable debt-to-income ratio.
Problem #3 - Low Credit Score
Credit scores range from 300 to 850, with 850 being the best. The higher your credit score, the easier it will be to qualify for a mortgage loan. You can also get a better interest rate when your credit is strong. But when your credit is low, you could have problems qualifying for a loan, and you'll likely pay a much higher interest rate. This means a bigger mortgage payment each month. Every lender looks at credit a little differently. The national average (U.S.) is around 723. Anything above 650 is usually considered good, and anything above 700 is considered excellent. Below 600, and you will start to have problems, in the form of higher interest rates.
Possible Solutions
The first thing to do is make sure you don't have errors on your credit report that are dragging your score lower than it should be. Visit AnnualCreditReport.com to request a copy of your credit report from all three credit-reporting agencies. Check your report to make sure there aren't any errors. If the reports are accurate, and you simply have a low credit score, you'll have to work on improving your credit. Pay your bills on time, and try to pay off as much debt as possible. In time, this kind of financial responsibility will help you increase your credit score.
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
The key to a smooth mortgage application process is to understand the most common mortgage problems, and then work hard to avoid them. So what are these common problems when applying for a mortgage, and what can you do to steer clear of them?
Problem #1 - Too Much Debt
When you apply for a mortgage loan, the lender will check your debt-to-income ratio. Basically, they will want to see how much money you make (next item) compared to how much you owe. The rule of thumb is 20%. Mortgage lenders prefer that your overall debt be no greater than 20% of your net income. If your debt is too high as compared to your income, it sends a signal that you cannot mange your finances. This can hurt your chances of qualifying for a loan at a good interest rate.
Possible Solutions
The solution here is simple. Reduce your debt. I know it's not always that simple, but if you want to qualify for a good mortgage loan, you'll need to have your debt under control. So the ideal scenario is to pay off as much of your debt as possible. If you are unable to do so, you could always shop for a more affordable home that would require a smaller loan.
Problem #2 - Not Enough Income
If you apply for a loan that a lender thinks you can't afford, your chances of being approved for the loan are slim. This may actually be a good thing, as it will prevent you from amassing more debt than you can cover with your income, which can lead to bigger problems like foreclose.
Possible Solutions
An obvious solution, of course, is to increase your income. But this is easier said than done. Another option would be to put more money down up front. If you make a down payment higher than the 20% average (say, 25% or 30%), you could qualify for a mortgage loan that doesn't require income verification. Just realize you'll probably pay a higher interest rate with this type of loan. A final option would be to get a co-signer, such as a parent or other relative ... somebody with good credit standing and favorable debt-to-income ratio.
Problem #3 - Low Credit Score
Credit scores range from 300 to 850, with 850 being the best. The higher your credit score, the easier it will be to qualify for a mortgage loan. You can also get a better interest rate when your credit is strong. But when your credit is low, you could have problems qualifying for a loan, and you'll likely pay a much higher interest rate. This means a bigger mortgage payment each month. Every lender looks at credit a little differently. The national average (U.S.) is around 723. Anything above 650 is usually considered good, and anything above 700 is considered excellent. Below 600, and you will start to have problems, in the form of higher interest rates.
Possible Solutions
The first thing to do is make sure you don't have errors on your credit report that are dragging your score lower than it should be. Visit AnnualCreditReport.com to request a copy of your credit report from all three credit-reporting agencies. Check your report to make sure there aren't any errors. If the reports are accurate, and you simply have a low credit score, you'll have to work on improving your credit. Pay your bills on time, and try to pay off as much debt as possible. In time, this kind of financial responsibility will help you increase your credit score.
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
Adverse Credit Mortgages - Home Buying Tips
Bad credit mortgage loans are available to individuals with bankruptcies, foreclosures, repo's, low credit ratings, etc. Unfortunately, having a negative credit rating means a higher mortgage rate and a limited choice of lenders. Still, there are numerous home loans to choose between. Thus, homebuyers with bad credit can easily qualify for a mortgage.
Who are Mortgage Brokers?
If buying a home with bad credit, a mortgage broker is your best friend. Without using a broker, selecting the right mortgage loan is time consuming. This would entail contacting several private lenders, and inquiring about their mortgage loan requirements. Because a large number of traditional lenders favor home buyers with down payments and high credit scores, persons with bad credit will not be eligible for most bank or credit union loan.
A better use of time would involve contacting a broker once the decision has been made to buy a home. Mortgage brokers have associations with several types of lenders, including an extensive selection of sub prime or bad credit mortgage lenders. Consequently, brokers are capable of quickly matching homebuyers with suitable loan programs.
How to Apply for Mortgage Loans
Homebuyers have the choice of using a local mortgage broker or an online broker. Both will have access to a large database of mortgage loans. However, applying online is much easier and convenient.
Online broker sites offer no-obligation mortgage quotes. Based on the information included, such as credit rating, income, desired loan amount, and debts, the broker will sort through various mortgage lenders, and remit a quote. On average, homebuyers will receive at least three quotes from different lenders.
Also, try using a Recommended Bad Credit Mortgage Lender from a list of bad credit lenders on ABC Loan Guide. ABC Loan Guide is an informational website about various types of loans.
Increase Chances of Getting a Better Rate
Homebuyers with a low credit rating should not expect the best mortgage rate. Of course, there are ways to improve your odds of obtaining a low rate mortgage. At least twelve months before applying for a mortgage loan, make an effort to boost your credit rating.
Most of the time, this can be accomplished by simply paying bills on time and reducing debts. Other approaches to raising credit score involves keeping credit accounts opened, limiting the number of credit inquires, and paying off high interest credit cards.
Article Source: http://EzineArticles.com/?expert=Carrie_Reeder
Who are Mortgage Brokers?
If buying a home with bad credit, a mortgage broker is your best friend. Without using a broker, selecting the right mortgage loan is time consuming. This would entail contacting several private lenders, and inquiring about their mortgage loan requirements. Because a large number of traditional lenders favor home buyers with down payments and high credit scores, persons with bad credit will not be eligible for most bank or credit union loan.
A better use of time would involve contacting a broker once the decision has been made to buy a home. Mortgage brokers have associations with several types of lenders, including an extensive selection of sub prime or bad credit mortgage lenders. Consequently, brokers are capable of quickly matching homebuyers with suitable loan programs.
How to Apply for Mortgage Loans
Homebuyers have the choice of using a local mortgage broker or an online broker. Both will have access to a large database of mortgage loans. However, applying online is much easier and convenient.
Online broker sites offer no-obligation mortgage quotes. Based on the information included, such as credit rating, income, desired loan amount, and debts, the broker will sort through various mortgage lenders, and remit a quote. On average, homebuyers will receive at least three quotes from different lenders.
Also, try using a Recommended Bad Credit Mortgage Lender from a list of bad credit lenders on ABC Loan Guide. ABC Loan Guide is an informational website about various types of loans.
Increase Chances of Getting a Better Rate
Homebuyers with a low credit rating should not expect the best mortgage rate. Of course, there are ways to improve your odds of obtaining a low rate mortgage. At least twelve months before applying for a mortgage loan, make an effort to boost your credit rating.
Most of the time, this can be accomplished by simply paying bills on time and reducing debts. Other approaches to raising credit score involves keeping credit accounts opened, limiting the number of credit inquires, and paying off high interest credit cards.
Article Source: http://EzineArticles.com/?expert=Carrie_Reeder
Home Buying 101: The All-Important Pre-Closing Inspection
The pre-closing inspection is the buyer’s opportunity to ensure that the house they are buying is in the same condition it was in when they first inspected it (prior to signing contracts).
Protecting Your Interests
The pre-closing inspection, also referred to as "the final walk-through" is a critical step in the home buying process, but many home buyers fail to take it seriously. As a buyer, you need to conduct a thorough inspection prior to closing on the house. Why? Because in most states, once the closing is completed, the seller has no further obligations to you.
How to Conduct Your Inspection
When you are doing the final inspection, start with the basics. Examine the windows and doors and make sure all of them open, close and lock. Double-check that the windows are not cracked or broken and that all screens are present.
Make sure there are no signs of flooding, leaking or water damage of any kind. Look on the ceilings and floors for evidence of this. If you see anything that seems awkward, make sure you speak to your agent about it.
Check that all appliances are working. That includes turning the oven on and ensuring it gets hot. Turn on the burners on the stove to make sure all of them light. Actually open the refrigerator and freezer to make sure they are working. Run the dishwasher, turn on the washing machine and the dryer.
Though you may feel awkward doing all of this, it will save you money and time down the road.
You should also turn all lights on and off to make sure they work. You might even check all the electrical plugs to ensure they work. Make sure none of the walls were damaged by movers or anyone else. Verity that any pools, hot tubs, saunas or other items are all operational and able to be tested.
Check on Repair Items
If the seller was required to do any work in the home, inspect the work carefully. Ask if there are any copies of work orders and warranties / guarantees by the vendors who performed the work.
It's usually a good idea to have your agent present when conducting your inspection. That way, you can speak to him or her about any concerns you have along the way. Your agent can negotiate any agreements that need to be made based on any of your findings.
Don't Be Shy
This is not the time to be shy or feel awkward. You are about to make what will probably be the largest investment of your life. Make sure you protect your investment by spending ample time during the pre-closing inspection.
Sometimes boxes and other obstructions make it difficult or impossible to do a complete inspection. In that case, make sure you voice that concern to your agent and / or attorney so an arrangement can be made to give you a chance to complete your inspection before all funds are released to the seller.
The pre-closing inspection usually takes place right before the closing (within 24 hours in most cases). Because of this, many buyers are anxious and exited, and therefore fail to do a thorough inspection. Slow down, keep a cool head, and give your future home a thorough pre-closing inspection.
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
Protecting Your Interests
The pre-closing inspection, also referred to as "the final walk-through" is a critical step in the home buying process, but many home buyers fail to take it seriously. As a buyer, you need to conduct a thorough inspection prior to closing on the house. Why? Because in most states, once the closing is completed, the seller has no further obligations to you.
How to Conduct Your Inspection
When you are doing the final inspection, start with the basics. Examine the windows and doors and make sure all of them open, close and lock. Double-check that the windows are not cracked or broken and that all screens are present.
Make sure there are no signs of flooding, leaking or water damage of any kind. Look on the ceilings and floors for evidence of this. If you see anything that seems awkward, make sure you speak to your agent about it.
Check that all appliances are working. That includes turning the oven on and ensuring it gets hot. Turn on the burners on the stove to make sure all of them light. Actually open the refrigerator and freezer to make sure they are working. Run the dishwasher, turn on the washing machine and the dryer.
Though you may feel awkward doing all of this, it will save you money and time down the road.
You should also turn all lights on and off to make sure they work. You might even check all the electrical plugs to ensure they work. Make sure none of the walls were damaged by movers or anyone else. Verity that any pools, hot tubs, saunas or other items are all operational and able to be tested.
Check on Repair Items
If the seller was required to do any work in the home, inspect the work carefully. Ask if there are any copies of work orders and warranties / guarantees by the vendors who performed the work.
It's usually a good idea to have your agent present when conducting your inspection. That way, you can speak to him or her about any concerns you have along the way. Your agent can negotiate any agreements that need to be made based on any of your findings.
Don't Be Shy
This is not the time to be shy or feel awkward. You are about to make what will probably be the largest investment of your life. Make sure you protect your investment by spending ample time during the pre-closing inspection.
Sometimes boxes and other obstructions make it difficult or impossible to do a complete inspection. In that case, make sure you voice that concern to your agent and / or attorney so an arrangement can be made to give you a chance to complete your inspection before all funds are released to the seller.
The pre-closing inspection usually takes place right before the closing (within 24 hours in most cases). Because of this, many buyers are anxious and exited, and therefore fail to do a thorough inspection. Slow down, keep a cool head, and give your future home a thorough pre-closing inspection.
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
Buying a First Home - How to Review Your Credit Report
Advanced Summary
This article will educate first-time home buyers on the relationship between credit and mortgage loans, and why a thorough review of one's credit should be part of your home buying process.
The Credit - Mortgage Relationship
Credit and mortgage loans go hand in hand. When you apply for a mortgage loan as part of the home buying process, the mortgage lender will review a number of your financial factors. One of those factors is your credit score, which is derived from your credit report. Basically, the mortgage lender wants to know (A) your credit score, which they will use to assess the risks involved in loaning money to you, and (B) your ability to manage debt.
Reviewing Your Credit
Long before you apply for a mortgage, you take a look at your credit. The idea is to get the "lay of the land" before a mortgage lender puts you under the financial microscope. At the least, this will help you avoid unpleasant surprises. At most, this will allow you to identify errors on your credit report and work to correct them.
Credit reports are maintained by three credit reporting companies. Chances are, you've heard of these companies before. They are Experian, Equifax and TransUnion. Your credit score is derived from the information found in the three credit reports maintained by the three aforementioned companies.
Getting Copies of Your Credit Report
As part of a thorough credit-review process, you'll need to start by requesting copies of your credit report from the three companies mentioned above. The easiest way to do this is to visit www.AnnualCreditReport.com. This is a joint website managed by all three of the credit reporting companies. By law, you are entitled to one free credit report per year, so you shouldn't have to pay anything if this is your first time.
Looking for Credit Errors
Once you receive your credit report, review it for errors or inaccuracies. Check the personal information to make sure it's correct. Look for loans or other lines of credit that are not yours (possible credit fraud), and anything else that doesn't seem right. If you find an error, visit the website of the company in question to submit a correction request. Or call the company's customer service number and ask how to proceed.
Don't delay in correcting credit mistakes. The process takes time, so start it as soon as you find an error. Under the Fair Credit Reporting Act (FCRA), credit reporting companies bear full responsibility for correcting inaccurate credit reports. So don't be shy about asking them to do so!
Credit Report vs. Credit Score
Let's clarify the difference between a credit report and a credit score. When you order your credit report, you won't receive a score. The score is usually determined by the mortgage lender, based on information found in the credit report. So if you want to know your credit score, you'll need to purchase it separately. You can obtain your credit score by visiting www.MyFICO.com.
http://ezinearticles.com/?Buying-a-First-Home---How-to-Review-Your-Credit-Report&id=552118
This article will educate first-time home buyers on the relationship between credit and mortgage loans, and why a thorough review of one's credit should be part of your home buying process.
The Credit - Mortgage Relationship
Credit and mortgage loans go hand in hand. When you apply for a mortgage loan as part of the home buying process, the mortgage lender will review a number of your financial factors. One of those factors is your credit score, which is derived from your credit report. Basically, the mortgage lender wants to know (A) your credit score, which they will use to assess the risks involved in loaning money to you, and (B) your ability to manage debt.
Reviewing Your Credit
Long before you apply for a mortgage, you take a look at your credit. The idea is to get the "lay of the land" before a mortgage lender puts you under the financial microscope. At the least, this will help you avoid unpleasant surprises. At most, this will allow you to identify errors on your credit report and work to correct them.
Credit reports are maintained by three credit reporting companies. Chances are, you've heard of these companies before. They are Experian, Equifax and TransUnion. Your credit score is derived from the information found in the three credit reports maintained by the three aforementioned companies.
Getting Copies of Your Credit Report
As part of a thorough credit-review process, you'll need to start by requesting copies of your credit report from the three companies mentioned above. The easiest way to do this is to visit www.AnnualCreditReport.com. This is a joint website managed by all three of the credit reporting companies. By law, you are entitled to one free credit report per year, so you shouldn't have to pay anything if this is your first time.
Looking for Credit Errors
Once you receive your credit report, review it for errors or inaccuracies. Check the personal information to make sure it's correct. Look for loans or other lines of credit that are not yours (possible credit fraud), and anything else that doesn't seem right. If you find an error, visit the website of the company in question to submit a correction request. Or call the company's customer service number and ask how to proceed.
Don't delay in correcting credit mistakes. The process takes time, so start it as soon as you find an error. Under the Fair Credit Reporting Act (FCRA), credit reporting companies bear full responsibility for correcting inaccurate credit reports. So don't be shy about asking them to do so!
Credit Report vs. Credit Score
Let's clarify the difference between a credit report and a credit score. When you order your credit report, you won't receive a score. The score is usually determined by the mortgage lender, based on information found in the credit report. So if you want to know your credit score, you'll need to purchase it separately. You can obtain your credit score by visiting www.MyFICO.com.
http://ezinearticles.com/?Buying-a-First-Home---How-to-Review-Your-Credit-Report&id=552118
Home Buying Terminology -- What's PMI?
If you're entering the home buying process, the term PMI will probably pop up on your radar. So what is PMI, and what does it have to do with your bottom line?
Private Mortgage Insurance, or PMI, is required on most mortgages with a loan-to-value ratio of 80% or more. In other words, if you put less than 20% down when buying a home, you will probably have to pay PMI.
A third-party insurer provides PMI to protect the mortgage lender. This is a critical point. Many homebuyers think PMI is designed to somehow protect them, but this is not the case. PMI protects the lender in case you default on your loan.
The only way PMI benefits a buyer is by helping them qualify for a loan in the first place. Beyond that, PMI does nothing for the homebuyer is merely one more thing to pay each month (normally half a percent of the loan amount).
This is not to say that PMI is all bad. It helps people with bad credit (or those who can't afford a 20% down payment) obtain a loan they wouldn't otherwise be able to obtain. So for some, PMI is the only path to homeownership. But for others, PMI is more avoidable.
Even if you can't afford a 20% down payment, there are ways to avoid paying PMI:
PMI Sidestep #1
You can get an 80-10-10 loan. In this option, you would pay 10% down and then obtain two loans for the remaining 90%. And because no single loan accounts for more than 80% of the home's value, you would avoid having to pay PMI. Interest on the second loan (the loan for 10%) will be higher, but the two loan payments combined will still probably be lower than a single loan with PMI on top.
PMI Sidestep #2
Another way to avoid PMI (while putting less than 20% down) is to pay a higher interest rate.
Here's the key to the two approaches above. Mortgage interest is tax deductible -- PMI is not. In the options above,you could conceivably pay less each month and have more to write off at tax time. With the PMI option, you might end up paying more each month with less of a write-off.
Bottom line: PMI can help some people qualify for a loan who might not qualify otherwise. But in most cases, PMI is best avoided if at all possible -- or discontinued as soon as you reach the 20% equity mark (80% loan-to-value or lower).
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
Private Mortgage Insurance, or PMI, is required on most mortgages with a loan-to-value ratio of 80% or more. In other words, if you put less than 20% down when buying a home, you will probably have to pay PMI.
A third-party insurer provides PMI to protect the mortgage lender. This is a critical point. Many homebuyers think PMI is designed to somehow protect them, but this is not the case. PMI protects the lender in case you default on your loan.
The only way PMI benefits a buyer is by helping them qualify for a loan in the first place. Beyond that, PMI does nothing for the homebuyer is merely one more thing to pay each month (normally half a percent of the loan amount).
This is not to say that PMI is all bad. It helps people with bad credit (or those who can't afford a 20% down payment) obtain a loan they wouldn't otherwise be able to obtain. So for some, PMI is the only path to homeownership. But for others, PMI is more avoidable.
Even if you can't afford a 20% down payment, there are ways to avoid paying PMI:
PMI Sidestep #1
You can get an 80-10-10 loan. In this option, you would pay 10% down and then obtain two loans for the remaining 90%. And because no single loan accounts for more than 80% of the home's value, you would avoid having to pay PMI. Interest on the second loan (the loan for 10%) will be higher, but the two loan payments combined will still probably be lower than a single loan with PMI on top.
PMI Sidestep #2
Another way to avoid PMI (while putting less than 20% down) is to pay a higher interest rate.
Here's the key to the two approaches above. Mortgage interest is tax deductible -- PMI is not. In the options above,you could conceivably pay less each month and have more to write off at tax time. With the PMI option, you might end up paying more each month with less of a write-off.
Bottom line: PMI can help some people qualify for a loan who might not qualify otherwise. But in most cases, PMI is best avoided if at all possible -- or discontinued as soon as you reach the 20% equity mark (80% loan-to-value or lower).
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
Port Orange Home Buying
If you’re just starting the process of buying a Port Orange home, be sure to know some basic facts about home buying first.
A home purchase is usually the biggest purchase a person will make in their lifetime, so home buying education is essential. Understanding the Port Orange real estate market – or other markets you might be interested in – is the foundation of any successful purchase.
What should you do before you begin looking at homes for sale? Here are some basics:
First, get pre-approved before you even begin working with a Port Orange realtor or looking at homes for sale. Don’t get pre-qualified, which isn’t the same thing. Be sure you know you are approved for a loan first; not only will this make you more desirable in the eyes of a potential home seller, but it will also help you understand how much Port Orange house you can afford.
Second, have fairly clear ideas about what you want in your new home. If you can talk to your realtor in a specific way, detailing what amenities you want and what you can live without, he or she can move ahead with a clear picture of what to show you. In addition, be realistic about what your budget will get you. Don’t ask to look at Port Orange homes with 5 bedrooms if your budget will allow 3.
Third, keep an open mind. Your real estate agent might suggest a “fixer upper” or a home not in the specific neighborhood you had in mind. Don’t immediately discount such suggestions, but rather consider they might end up being viable options. The Port Orange real estate market is a diverse one, so keep your mind open and you might surprise even yourself with your home choice.
Kevin is a realtor® at Gaffs Realty Co in the Port Orange. He sells Port Orange real estate and beautiful Port Orange homes. Kevin Kling can be reached directly at 386-527-8577.
Article Source: http://EzineArticles.com/?expert=Kevin_Kling
A home purchase is usually the biggest purchase a person will make in their lifetime, so home buying education is essential. Understanding the Port Orange real estate market – or other markets you might be interested in – is the foundation of any successful purchase.
What should you do before you begin looking at homes for sale? Here are some basics:
First, get pre-approved before you even begin working with a Port Orange realtor or looking at homes for sale. Don’t get pre-qualified, which isn’t the same thing. Be sure you know you are approved for a loan first; not only will this make you more desirable in the eyes of a potential home seller, but it will also help you understand how much Port Orange house you can afford.
Second, have fairly clear ideas about what you want in your new home. If you can talk to your realtor in a specific way, detailing what amenities you want and what you can live without, he or she can move ahead with a clear picture of what to show you. In addition, be realistic about what your budget will get you. Don’t ask to look at Port Orange homes with 5 bedrooms if your budget will allow 3.
Third, keep an open mind. Your real estate agent might suggest a “fixer upper” or a home not in the specific neighborhood you had in mind. Don’t immediately discount such suggestions, but rather consider they might end up being viable options. The Port Orange real estate market is a diverse one, so keep your mind open and you might surprise even yourself with your home choice.
Kevin is a realtor® at Gaffs Realty Co in the Port Orange. He sells Port Orange real estate and beautiful Port Orange homes. Kevin Kling can be reached directly at 386-527-8577.
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