Home Buyers Face Decisions that Affect Their Long-Term Financial Picture
Taking the step into home ownership is one of the most important financial decisions a person will make in their lifetime. There are many factors to consider when embarking on this venture. Literally hundreds of loan programs are available, and it is important to find the one that best fits your personal long-term goals.
First and foremost, you must have a mortgage consultant in your corner that is willing to take the time to know what your long-term goals are. Communication is the key factor here.
Curious prospective home buyers sometimes turn to Internet-based services just to see what current interest rates are. But a faceless web site will not take the prospect s future financial planning into consideration or guide the potential borrower through the many nuances of the loan process. When shopping for a home loan, be wary of web-based services that offer programs to reel prospects in with attractive rates that are based upon unrealistic time frames.
If a lender is offering a terrific rate based on a 10-day lock-in period, it is unlikely that the potential home owner would actually be able to find their dream home, get through the negotiation process and win approval from a lender within such a short period of time. This is called short-pricing, and when it comes time to close the transaction, the rate that was originally offered is simply no longer available. As a result, the unfortunate prospect is bulldozed into a loan program with a higher interest rate.
It is highly unlikely that a qualified loan originator whose business is based upon referrals will use unscrupulous tactics such as this to get new customers in the door!
Once you have found a mortgage consultant that you feel comfortable working with, lay your goals out on the table because it will have a tremendous impact on choosing a loan program that meets your specific needs. One of the most important factors to consider is how long you wish to borrow the money for. For example, if you know you will only be in the home for five years, it wouldn t make sense to opt for a 30-year loan program or pay points up front to secure a lower interest rate. You would not be in the home long enough to benefit from such action.
Your mortgage consultant should be able to narrow down a selection of programs based on the information that you have provided, and present you with an easy-to-read spreadsheet that clearly defines viable options for your interest rate and amortization schedule, monthly payment and any potential savings you may realize by paying points up front.
Moreover, a reputable loan originator will not hesitate to share this information with your tax consultant or financial planner so they may offer additional feedback on your behalf.
Home ownership imparts a rewarding vehicle for building wealth and a strong financial future. The mortgage consultant that you choose should be there not only when your loan closes, but should also provide you with ongoing service to assist you in managing that debt over time.
For more information and helpful tips to help you through the home purchasing process, download your free copy of the Homebuyer s Handbook . This booklet is an excellent guide for first time home buyers and covers topics ranging from credit scoring and points to pre-approval and home inspections. It even contains a glossary of industry terms. <a href="http://www.fpf-direct.com/homebuyerhandbook.html">Click Here To Get Your FREE E-Book</a> sent directly to your E-Mail.
Fixed brokerage or Set Fee giving way to percentage brokerage in Real Estate
It is human nature to dream. Everyone who strives to achieve a certain status in his or her life dream of many achievements and at some time of their life these dreams revolve around the ultimate achievement for many people - owning a home. Some go even further and dream of perhaps owning few real estate properties as investments. It is when these dreams are in the process of being realized that one encounters the ugly fact that they have to deal out over six percent of the value to a broker ” whether one is selling home or buying home. This could amount to a lot of cash, however, Help-U-Sell seem to be the answer to these woes, with their set fee system as opposed to a percentage brokerage system, they can save a lot of cash, and we are talking thousands of dollars not penny pinching ” both for real estate buyers and real estate sellers. Trained professionals at your service www.helpusell.com are members of the National Association of Realtors and are online realtor services providers. The difference here is that they don t charge you the conventional six percent fee that all other real estate brokerage firms and individuals charge. They have what they call a set fee system for their clients and this definitely works out far more economical than having to dole out 6 percent of the property cost plus the taxes. If you compare the fixed fee the clientele paid to Help-U-Sell with the 6 percent they would have had to pay as conventional brokerage they have actually saved 400 million dollars for their ever growing client base in a single year. That really proves that the set fee system truly is customer centric - benefiting both Real Estate Buyers and Real Estate Sellers, the same way. Help-U-Sell authorizes licensed real estate agents to help you buy home or sell home. These individuals are highly trained professionals who take you through the entire process of buying or selling a property. These real estate services include listing the property, handling negotiations, offering referrals to other service providers, showing the property to the prospective buyer, and over all providing their reputed representation that guarantees the property to have a clear title. These licensed professionals charge a professional fee set by the company instead of a percentage of the property s current value. This proves to be a saving of about fifteen thousand dollars, on a property valued at five hundred thousand dollars, for both the buyer as well as the seller. Imagine the things you could do with this kind of savings! New furnishings, bathroom fittings, or just about anything. Value for money Another advantage of Help-U-Sell is that when they advertise your property they are doing just that, they will not infringe on your advertisement time and space by advertising their services. This ensures value for money and also getting the point home to prospective buyers. Buyers can browse through over two million listings on their site and then, for a set fee rather than a percentage of the value of the property, solicit the services of these highly professional group and transact a completely trouble free real estate transaction. The fact that thousands of clients are turning to a set-fee system for selling or buying of property proves the popularity and cost effectiveness of the set fee system. With their set fee system Help-U-Sell is definitely going places after appointing over 60 franchises in the U.S., establishing 14 offices in South Africa and now have set up base in the Philippines, Seems like the set fee system of real estate is here to stay.
<p><b>Learn More:</b></p> <p><a href="http://www.helpusell.com/" title="Real Estate" target="_blank">Real Estate</a> - Help-U-Sell Real Estate.</p> <p><b>About the author:</b></p> <p><b>Andy Steuer</b> is the Founder and CEO of Fidelity Assets, a <a href="http://www.fidelityassets.com/" title="Real Estate Marketing" target="_blank">real estate marketing</a> company helping real estate agents and brokers generate real estate leads.</p>
Guidelines For Purchasing your New Home
Buying a home is a major event for anyone. It marks the day that they have arrived on the equity ladder and ushers in a new era of self-sufficiency. If this is the first time you have purchased a home then get ready for some heavy shopping and some important decisions. There are certain steps that one should take when considering the purchase of a home and these should be taken care of as early in the process as possible. The first of these is, of course; having your mortgage pre-approved and ready to go. Shopping from a place of security in a financial respect takes allot of pressure off the situation. Sellers also like to see buyers who are financially ready to purchase. It simply adds more credence to your offer should you make one. And be careful about the lender you choose to work with. There are so many shady lenders circulating right now and you will need to be sure that you are working with a lender that is honest and professional.
The next necessity comes in the actual shopping for a home. Some homes simply look fantastic online but listing pictures can be modified to look better and you really don’t want to buy on photos alone. If you are purchasing a home far away this may be necessary but it should be avoided if at all possible. It is too easy to miss little imperfections and drawbacks in photos and videos, there is really no substitute for actually being there. In addition it is impossible to get a feel for the home and neighborhood through pictures. The immediate area is going to have a huge impact on both you and your home for years to come so it pays to know what kind of area you are moving into.
Other things you should consider: are you going to be expanding your family soon? If so then the local schools should play a big role in choosing a home. with such an importance on education it is necessary to ensure that the local schools are fulfilling and exceeding their expectations. The home should also be within a short distance of the shopping areas and places of employment that you will frequent. Location is really key to a new home purchase so be sure to know your areas before getting there.
Melissa O'Connell is the broker and matriarch of Unique Scottsdale Homes, your elite choice for <a href="http://www.uniquescottsdalehomes.com">Scottsdale real estate</a>. For easy access to the <a href="http://www.uniquescottsdalehomes.com/search-mls.php">Scottsdale MLS</a> visit us online soon at Unique Scottsdale Homes.
What are the Main Fears of First-Time Buyers?
There are a lot of different concerns facing a first-time buyer. A survey released by the National Association of Realtors found that Americans overwhelmingly believe that high monthly payments are the greatest obstacle to buying a home. Homebuyers fear high monthly payments more than high down-payments by a margin of 2-1. The fourth annual National Housing Opportunity Pulse survey says that one out of three Americans worries about their monthly mortgage payments. The survey also lists the leading concerns associated with owning a home. Rising property taxes tops the list at 34% followed closely by increasing electrical, fuel and other energy costs at 28%, while 14% worry about rising interest rates. What many first-time buyers do to answer some of these concerns is that they will consult with friends who own a home, neighbors or the newspaper. The problem with consulting with friends or family members is that the situation of the friends and neighbors is different than their own. The amount of the down payment, the credit scores, loan-to-value ratio, income, etc. is going to be different. So the loan products they qualify may very well be different than what their friends and neighbors qualified for so their eventual mortgage will definitely not be the same. There are a few steps a first-time buyer should do to begin eliminating some of these fears: 1) First and foremost is to have a budget. Get your expenses down in writing and find out how much mortgage you can afford to pay. Find out how much money you will be willing to put down for a down payment. Also plan to have money left over for possible closing costs and for miscellaneous up keeping once you move in. 2) Meet with a lender and ask to get a FREE credit report. You need to find out what your credit is so you know what kind of loans you may qualify for. Once you meet with a lender, you will get pre-qualified for a home. This means that you are qualified to be able to be pre-approved to purchase a home. An experienced Realtor should be able to give you at least two referrals of loan officers. 3) Once you know how much home you can afford, ask your Realtor if you can buy a condominium or a single family home and in what areas you will be able to buy your home. 4) Make a list on what features in a home are important for you. Do you want 2 bedroom 2 Bath home or a 3 Bedroom 1 Bath home? Will it be a two-story home? Do you want hardwood floors or carpet? There are many other features to list but these can at least give you a head start. 5) Think Big Picture! Know why you are buying. Are you looking to buy any home just to get your foot in the door and eventually planning to upgrade? Or are you planning to live in the home for a long time? Are you looking to invest in Real Estate down the road? There are many other questions to ask before you buy a home. I listed just a few to get you started with your game plan and help you eliminate some of the fears. We are in a solid Buyers’ Market in San Diego. There are more homes to choose from, home prices continue to go lower in some neighborhoods, homes are staying on the market longer, sellers are more willing to negotiate and interest rates are still low! So this is a great time to take the next step to get knowledgeable. Any questions or to sign up for my free monthly newsletter, give me a call at (619) 245-5221 or just send me an e-mail at raullozoya@century21award.com.
Raul Lozoya has been a licensed REALTOR working with Buyers and Sellers in San Diego, CA since 2004. Raul specializes in working with First-time buyers and has helped many first-time buyers buy their first home.
