| Are you considering purchasing a new home? | | | | just an adjustable interest rate. Find out what |
| Don’t do anything until you know more | | | | everything means, and what will happen if things |
| about your options. | | | | change in the future. Often time’s |
| If you’re in the market for a new home or | | | | companies will allow you to purchase an adjustable |
| a mortgage refinance, don’t do anything | | | | rate mortgage with the option of converting it to |
| until you understand a little more about how | | | | a fixed rate later on down the road. Some |
| lenders work and the home buying process. There | | | | companies will offer interest only loans, where the |
| are several points to remember when shopping | | | | only amount you are required to pay for the first |
| for your home loan, and some of them might not | | | | few years is the interest on the loan. This option |
| be what you want to hear. | | | | can be good if you have a property in mind that |
| • Not All Lenders Have Your Best Interest | | | | you know you want, but you can’t quite |
| in Mind | | | | afford. Only go this route if you are 100% |
| All lenders will make one thing very clear to you | | | | positive that you will be generating enough income |
| – they want to make your home loan | | | | in the very short future to pay more than just |
| purchase fast and easy. While this makes for | | | | the interest on the loan. Sometimes companies will |
| great advertising copy and even sounds good on | | | | qualify you for a loan of this type even if you |
| the surface that really isn’t what you as a | | | | can’t afford the interest and pri!ncipal |
| potential homebuyer need to hear. Remember | | | | combined. If you do get qualified in this manner, |
| that when you are looking for a good loan deal, | | | | make sure you will be able to make the |
| it’s best to take your time, ask lost of | | | | payments in the future. |
| questions, and ask those same questions to as | | | | • Find out About the Home Buying Process |
| many different lenders as possible. You will be | | | | Ask people you know who have already |
| amazed at the different things that companies, | | | | purchased their homes what problems they ran |
| and even individual agents within the same | | | | into during the process. Find out about any |
| company, will offer you. In addition to obvious | | | | surprises they had, or if they were happy with |
| things like interest rates, how much you qualify | | | | the people they worked with and the loan they |
| for, and what your payments will be, make sure | | | | received. A lot of mortgage companies want you |
| you ask about points, closing costs, agent fees, | | | | to know the exact property you are interested in |
| and all additional fees that will be added onto the | | | | buying, and if not the exact property some |
| total cost of your loan. Most companies like to | | | | specific details about what you are looking for. |
| add in fees for any number of things after | | | | Find out about home values in the area where |
| you’ve already been approved for the loan | | | | you are looking, and see if you can find an old |
| and started the process. That’s when | | | | appraisal for the home online. If you do a little |
| they’ll add in transaction fees! | | | | searching on the internet, you can usually find out |
| , filing fees, or any other costs that most people | | | | a lot about the specific area you are looking for. |
| don’t take the time to ask about. Many | | | | Search for things like crime statistics, average |
| times these fees will be added onto the principle | | | | income, the predominant property type and the |
| mortgage amount, not the closing costs. It might | | | | average home value. You can type in the exact |
| not sound like a lot to finance an extra $2,500 | | | | address you are looking at and many times you |
| dollars on top of a $100K loan over the course of | | | | will find out some very detailed information about |
| thirty years, but do you really want to give that | | | | the property. Try doing a search for the MLS |
| agent more of your hard earned money for | | | | listings in your area. MLS stands for multipl!e listing |
| nothing? Once you find out all the details and | | | | service and is a type of industry standard the |
| exactly how much your mortgage will cost, with | | | | professionals use to locate information about |
| all extra fees included, check the paperwork to | | | | properties for sale and the areas where they are |
| make sure everything looks the way it should. | | | | located. |
| Just because they tell you something over the | | | | Buying a new home can be one of the most |
| phone doesn’t mean it won’t still be | | | | exciting and challenging things you will ever do, but |
| slipped in on the back page of your mortgage | | | | by finding out everything you can about the |
| packet. | | | | process and the variables involved in you can |
| • Know the Differences between Different | | | | better prepare yourself. By doing a little research |
| Loan Options | | | | and anticipating what to expect during the home |
| Make sure you find out about all the different | | | | buying process you can save yourself a ton of |
| types of loan products that are available to you. | | | | money, time and sleepless nights knowing that |
| The difference between a 30 year fixed rate loan | | | | you have all the information you need to make |
| and a 30 year adjustable rate loan is more than | | | | the best decision you can. |