REALLY BUYING A HOUSE IS AN EXCITING. EVERYONR DREAMS FOR HIS OWN HOUSE .BUYING A HOUSE CAN BE STRESS FULL ,ESPECIALLY WHEN YOU ARE GOING TO BUY AFIRST TIME
HOW MUCH YOU CAN AFFORD
FIRST OF ALL THE MATTER IS HOW MUCH YOU CAN AFFORD.DETERMINIG HOW MUCH YOU YOU CAN AFFORD FOR A HOUSE IS NOT SIMPLE,SINCE MOST OF PEOPLE FINANCE THEIR HOUSE BUING A HOUSE USAUALLY MEANSETTING A MORTGAGE.FIRST OF ALL YOU SHIOULD KNOW HOW MUCH MORTGAGE YOU CAN AFFORD TO FIGURE THIS OUT .YOU NEED TO TAE INTO YOUR GROSSORY MONTHLY INCOME.HOUSING EXPENCES AND LONG TERM DEBT.TRY ONMANY REAL ESTATE AND PERSONAL FINANCE WEBSITES TO HELP YOUR CALCULATION
MORTGAGE PRE QUALIFICATION VRSPREAPPROVAL ONCE YOU GET IDEA MUCH OF A MORTGAGE YOU CAN AFFORDYOU HAVE TO COMPARETHE MORTGAGE RATES AND TERMS,THAT VARIOUS LENDERS OFFERS YOU.WHEN YOU GET THE RIGHT PERSON FIND OUT HOW YOU CAN PREQUALIFY OR GET APPROVALFOR LOAN.PREQUALIFING GIVES YOU LENERS IDEA HOW MUCH YOU CAN BORROW PREQUALIFING DOES NOT GIVE
GURANTEE FOR LOAN BUT IT GIVES YOU ROUGH IDEA WHERE YOU STAND THIS INVOLVES PREAPPROVAL STANDS FOR WHEN LENDER VERIFIES YOUR INCOME.AN APPLICATION REVELINGYOUR FINANCIAL INCOME AND PAYING A FEE.
BEFORE SIGNING LOAN PAPER WORK BE CAREFULL ABOUT YOUR LIFESTYLE AND STANDARD OF LIVING .BE SURE THAT YOUR MORTGAGE PAYMENT NOT BEYOND YOU MEANS
SHOULD YOU USE A REAL ESTATE AGENY BUYERS BROKER
REAL ESTAGE AGENT OR BUYERS BROKERS CAN GUIDE YOU THE PROCESS OF BUYING A HOUSEAND MAKE THE PROCESS EASIER
HE CAN HELP YOU
1HE CAN SHOW YOU THE PROPERTIES IN YOUR PRICE RANGE
2 PREPARE AND PRESENT AN OFFER TO PURCHASE
3DISCLOSE POSITIVE AND NEGITIVEASPECTS OF PROPERTIES YOU ARE CONCEDERING
4 RECOMEND THE PROFFESIONALS WHOSE SERVICES YOU WILL NEED AS LAWYERMORTGAGE BROKERS INCEPECTORS ETC
KEEP IN MIND THAT THE AGENT OR BROKER YOU WILL WIIL CHARGE YOU YOU SHOULD KNOW HOW HE IS GOING TO CHARGE YOU AS FLAT FEES OR PERCENTAGE ON OF SALE PRICE
CHOSING RIGHT HOUSEDECIDE IN ADVANCE FEATURES
1PRICE OF HOUSE
2 LOCATION OR NEGIHBOURHOOD
3STYLE OF HOUSE
4QUALITY OF LOCAL SCHOOLS
5 CRIME LEVEL OF AREA
6 PROPERTY TAXES
MAKING THE OFFER
ONCE YOU FINF A HOUSE YOU WANT TO MAKE AN OFFER MOST HOME SALE OFFERS AND COUNTEROFFERS
ARE MADE THROUGH AN INTERMEDIARY,SUCH AS A REAL ESTATE AGENT .ALL TERMS AND CONDITIONS NO MATTER HOW TIME IT WILL TAKE SHOULD BE IN WRITTEN TO AVIOD FUTURE PROBLEMSTYPICALLY YOUR ATRRONEY OR REAL ESTATE AGENT WILL PREPARE AN OFFER TO PURCHASEFOR YOU ALSO INCLUDE ANOMINAL DOWN PAYMENT SUCH AS 500$
IF THE SELLER ACCEPTS THE CONTRACT HE WILL SIGN THE CONTRACT.WHICH WILL THEN BECOME A BINDING AGREMMENT BETWEEN YOU AND SELLER.ITS GOOD TO HAVE YOUR ATTORNEY REVIEW ANY OFFER TO PURCHASE YOU SIGN
OTHER DETIALS
ONCE THE SELLER ACCEPTS YOUR OFFER YOUR REAL ESTATE AGENT OR MORTGAGELENDER WILL GET BUSSY IN DOCUMENTING NECESSARY TO FINILAZE THE PURCHASE.THIS INCLUDE FINANILIGINGTHE MORTGAGE LOAN APPRAISING THE HOUSESUTVING THE PROPERTY AND GETING HOME OWNER INSURANCE
THE CLOOSING MEETING
THE CLOSING MEETING ALSO KNOWN AS SETTELMENT CAN BE A TEDIOUS PROCESS.BUT WHEN IT IS OVER
THE HOUSE IS YOURS.TO MAKE SURE THE CLOSING MEETING GOES SMOOTHLYSOME OR ALL OF THESEBE PRESENT IN CLOSING MEETINGTHE SELLER OR THE SELLERS ATTORNEY YOUR ATTORNEYTHE CLOSING AGENT REAL ESTAE ATTORNEYOR MORTGAGE LENDER
AT THE CLOSING YOU WILL BE REQUIREDTO SIGN THE FOLLOWIN PAPER WORK
1PROMISSORY NOTE:THIS SHOW THE AMOUNT AND REPAYMENT TERMS OF MORTGAGE LOAN
2MORTGAGE;THIS GIVES THE LENDER A LOAN AGAINST PROPERTY
3TRUTH IN LENDING DISCLOSURE
THIS SHOW HOW YOU WILL PAYOVER THE MORTGAGE
4 HUD1 SETTELEMET STATEMENT
THIS SHOW THE CASH FLOW AMONG BUYER SELLER LENDER AND OTHER PARTIES TO THE TRANSACTION
YOU WILL HAVE TO PAY CERTAN COSTS ,FEES ASSOCIATED WITH OBTANING MORTGAGE CLOSING THE REAL ESTATE TRANSACTION THIS WILL COST ABOUT 3 TO 7 PERCENT OF YOUR MORTGAGE PLAN
Tuesday, November 11, 2008
Monday, November 10, 2008
BASICS OF GETTING A MORTGAGE
THE LOAN YOU GET FROM BANK IS CALLED MORTGAGE
THE BANK LOANING THE MONEY IS THE LENDER
THE MONEY YOU PAY TO THE BANK EVERY MONTH IS CALLED MORTGAGE PAYMENT
THE RATE OF INTERST ON LOAN IS CALLED MORTGAGE RATE OR INTEREST RATE
IF YOU DONT PAY YOUR MORTGAGE PAYMENT THE BANK WILL REPOOSSESS THE HOUSE THEN THEY WILL SELL ITTO MAKE SURE THAT THEY CANB RECOP THE MONEY THEY LOANED TO YOU.
THE NUMBER OF YEARS IN US IT TAKES TO PAY BACK LOAN IS CALLED TERM IN US ITS TWO TYPE 15 YEARS AND 30 YEARS
15 YEARS MORTGAGE
1 SAVE A BUNDLE OF INTEREST
2 PAY OF LOAN IN HALF YEAR
30 YEAR MORTAGAGE
EASIER TO QUALIFY
LOWER MONTHLY PAYMENTS
ALLOW YOU TO BUY A HIGHER PRISE HOUSE
HOW YOU CHOOSE BETWEEN THE TWO
IF YOU WANT MORE FLEXIBILITY THEN CHOOSE 30 YERS MORTGAGE
WITH A 15 YEARS MORTGAGE YOU WILL HAVE TO PAY BIGGER AMOUNT EVERY MONTH WHETHIR YOU LIKE IT OR NOT
ON THE OTHER HAND IF YOU CAN DEFINATELY PAY THE PAYMENTS ON A 15 YEARS LOAN THEN YOU CAN TAKE THE 15 YEARSLOAN YOU WILL SAVE A BUNDLE OF INTEREST THIS WAY
THE BANK LOANING THE MONEY IS THE LENDER
THE MONEY YOU PAY TO THE BANK EVERY MONTH IS CALLED MORTGAGE PAYMENT
THE RATE OF INTERST ON LOAN IS CALLED MORTGAGE RATE OR INTEREST RATE
IF YOU DONT PAY YOUR MORTGAGE PAYMENT THE BANK WILL REPOOSSESS THE HOUSE THEN THEY WILL SELL ITTO MAKE SURE THAT THEY CANB RECOP THE MONEY THEY LOANED TO YOU.
THE NUMBER OF YEARS IN US IT TAKES TO PAY BACK LOAN IS CALLED TERM IN US ITS TWO TYPE 15 YEARS AND 30 YEARS
15 YEARS MORTGAGE
1 SAVE A BUNDLE OF INTEREST
2 PAY OF LOAN IN HALF YEAR
30 YEAR MORTAGAGE
EASIER TO QUALIFY
LOWER MONTHLY PAYMENTS
ALLOW YOU TO BUY A HIGHER PRISE HOUSE
HOW YOU CHOOSE BETWEEN THE TWO
IF YOU WANT MORE FLEXIBILITY THEN CHOOSE 30 YERS MORTGAGE
WITH A 15 YEARS MORTGAGE YOU WILL HAVE TO PAY BIGGER AMOUNT EVERY MONTH WHETHIR YOU LIKE IT OR NOT
ON THE OTHER HAND IF YOU CAN DEFINATELY PAY THE PAYMENTS ON A 15 YEARS LOAN THEN YOU CAN TAKE THE 15 YEARSLOAN YOU WILL SAVE A BUNDLE OF INTEREST THIS WAY
PAYING BACK A MORTGAGE
YOU PAY BACK A MORTGAGE YOUR LOAN BY MAKING A PAYMENT EVERY MONTH
BANK DOESNOT SEND YOU A BILL ITS YOUR RESPONSIBILTY TO MAKE THE PAYMENTS EVERY MONTHTHEY GIVE YOU A LITTLE COUPON BOOKONE SLIPP FOR EACH MONTH SO YOU CAN INCLUDE THE SLIP WHEN YOU SEND A CHECK .THESE DAYS MOST OF BANK ALSO LET YOU PAY ONLINEI STRONGLY URGE TO SET UP AN AUTOMATIC MONTHLY DRAW FROM YOUR ACCOUNT SO YOU NEVER MISS A PAYMENT
PART OF THE PAYMENTGOES TOTHE BANK LOANED YOU THE AMOUNTAND PART OF IT AS INTEREST
FIGURE THAT IF YOU HAVE LOAN OF 100000 $AT 8 PERCENT INTEREST YOU WILL PAY TO BANK 108000
1COMPARING LOAN OFFERS FROM TWO DIFFERENT BANKS JUST DIFFERENCE OF 1 PERCENT MEANS A BIG DIFFERENCE YOUWILL PAY
YOU PAY BACK A MORTGAGE YOUR LOAN BY MAKING A PAYMENT EVERY MONTH
BANK DOESNOT SEND YOU A BILL ITS YOUR RESPONSIBILTY TO MAKE THE PAYMENTS EVERY MONTHTHEY GIVE YOU A LITTLE COUPON BOOKONE SLIPP FOR EACH MONTH SO YOU CAN INCLUDE THE SLIP WHEN YOU SEND A CHECK .THESE DAYS MOST OF BANK ALSO LET YOU PAY ONLINEI STRONGLY URGE TO SET UP AN AUTOMATIC MONTHLY DRAW FROM YOUR ACCOUNT SO YOU NEVER MISS A PAYMENT
PART OF THE PAYMENTGOES TOTHE BANK LOANED YOU THE AMOUNTAND PART OF IT AS INTEREST
FIGURE THAT IF YOU HAVE LOAN OF 100000 $AT 8 PERCENT INTEREST YOU WILL PAY TO BANK 108000
1COMPARING LOAN OFFERS FROM TWO DIFFERENT BANKS JUST DIFFERENCE OF 1 PERCENT MEANS A BIG DIFFERENCE YOUWILL PAY
HOW TO BUY A HOUSE
TYPES OF LOANS
FOR THE MOST PARTYOU DONT HAVE TO CONCERN YOURSELF WITH THE DIFFERENCE BETWEEN THE MAIN KINDS OF LOAN {CONVENTIONAL,FHA,AND VA LOAN]. ITS YOUR LENDERJOB TO TRYTO PICKTHE BEST LOAN FOR YOUR NEEDS.
HERE WE GO ABUT LOANS
FHA THE US GOVVERMENT OFFERS THE FHA LOAN TO MAKE HOME BUYING EASIER.THE GOVERMENT GURANTEES PART OF LOAN IF YOU DEAFAULT .SINCE THE LOAN IS PARTIALLY GURANTEED IT EASIER TO GET.DONT BE EXCITED ABOUT GOVT MAKING PAYMENT FOR YOU .IF YOU FAIL TO MAKE THE MORTGAGE PAYMENTS BANK WILL TAKE HOUSE BACK.THE GOVT PAYS THE BANK AFTER THE BANK HAS ALREADY RESPOSSESED YOUR HOUSE ALL SELLERS WILL NOT AGREE FOR FHA LOANTHE HOUSE HAS TO BE IN EXCELLENT SHAPE TO PASS IN FHA INSEPECTION
VA LOANS
VA LOANS ARE AN OPTION FOR VETERANS .ITS POSSIBLE 0%DOWN ON ONE JUST LIKE THE FHA LOANS .THE VA ITSELF DOESNTLEND MONEYITS JUST GURANTEE PART OF LOAN SO THAT SELLER FEEL COMFORTABLE LENDING MONEYVA LOANS CAN BE ASSUMED BY ANY FUTURE BUYER IF YOU NEED TO SELL THE HOUSE YOU CAN SELL IT TO ANUBODY NOT ONLY VETERIAN SITE FOR VA LOAN WWW.HOMELOANS.VA.GOV/
FOR THE MOST PARTYOU DONT HAVE TO CONCERN YOURSELF WITH THE DIFFERENCE BETWEEN THE MAIN KINDS OF LOAN {CONVENTIONAL,FHA,AND VA LOAN]. ITS YOUR LENDERJOB TO TRYTO PICKTHE BEST LOAN FOR YOUR NEEDS.
HERE WE GO ABUT LOANS
FHA THE US GOVVERMENT OFFERS THE FHA LOAN TO MAKE HOME BUYING EASIER.THE GOVERMENT GURANTEES PART OF LOAN IF YOU DEAFAULT .SINCE THE LOAN IS PARTIALLY GURANTEED IT EASIER TO GET.DONT BE EXCITED ABOUT GOVT MAKING PAYMENT FOR YOU .IF YOU FAIL TO MAKE THE MORTGAGE PAYMENTS BANK WILL TAKE HOUSE BACK.THE GOVT PAYS THE BANK AFTER THE BANK HAS ALREADY RESPOSSESED YOUR HOUSE ALL SELLERS WILL NOT AGREE FOR FHA LOANTHE HOUSE HAS TO BE IN EXCELLENT SHAPE TO PASS IN FHA INSEPECTION
VA LOANS
VA LOANS ARE AN OPTION FOR VETERANS .ITS POSSIBLE 0%DOWN ON ONE JUST LIKE THE FHA LOANS .THE VA ITSELF DOESNTLEND MONEYITS JUST GURANTEE PART OF LOAN SO THAT SELLER FEEL COMFORTABLE LENDING MONEYVA LOANS CAN BE ASSUMED BY ANY FUTURE BUYER IF YOU NEED TO SELL THE HOUSE YOU CAN SELL IT TO ANUBODY NOT ONLY VETERIAN SITE FOR VA LOAN WWW.HOMELOANS.VA.GOV/
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