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TIPS FOR BUYERS... |
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Know Your Rights as a Homebuyer. There are laws that can prevent you from falling into scams and engaging in unnecessary expenses. Research your rights to ensure that you are being served rightfully.
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Find out how much mortgage you can afford to avoid wasting time, by considering current interest rates. Use one of our simple calculators to see how much you can afford in a mortgage payment.
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Create a list of the features you would like to have in your home. This will save you as well as your broker/agent a lot of time.
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Find a real estate broker or agent who seems knowledgeable and credible. You will be working closely with him/her so you should make sure that he/she has a personal style that will suit well with your own.
Demand Experience :
Buying a home is probably one of the largest investments you may make so you need to be sure that your broker/agent is experienced in what he/she does.
Look for Commitment: Try finding a broker/agent who works full-time in the Real Estate profession.
Conduct Interviews :
Get recommendations from friends, relatives, or neighbors regarding brokers/agents they have worked with. You can also search the Web, read through home magazines and newspapers to learn about brokers, agents, and their companies. The interview does not have to be a formal one-it is just your opportunity to meet or speak with a broker or an agent so that you can explain your needs, ask questions, and determine whether or not you feel comfortable dealing with him/her..
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Look for a mortgage: Shop, Compare, Negotiate!!!
Collect Information from Several Lenders: you can contact commercial banks, mortgage companies, credit unions, or mortgage brokers. A mortgage broker will be the middleman between you and your lender. If you choose to work with a broker, you should as how he or she will be compensated so you can compare the fees for different brokers. Keep in mind that this process will entail negotiation if you want the best rates.
Collect Important Cost Information : Know how much of a down payment you can afford and find out other costs that may be involved in the loan. Simply knowing the monthly payment or interest rate is not sufficient information-you need to ask about the same loan amount, loan term, and the type of loan.
Rates: collect the following information from your broker or lender:
Whether the rates being quoted are the lowest for that day or week.
Whether the rate is fixed or adjustable.
If adjustable, ask how your rate and loan payment will vary.
What the loan's annual percentage rate (APR) is.
Points: these are fees paid to the broker or lender for the loan-one point equals one percent. The rate is usually lower if you pay more points, but ask for points to be quoted in dollar amount so you know just how much you pay.
Fees: Expect to be charged loan origination or underwriting fees, broker fees, and transaction, settlement, and closing costs (many of these fees are negotiable.) If you are unclear about the multiply kinds of fees, make sure to ask your broker or lender to explain them to you.
Down Payments and Private Mortgage Insurance: Most lenders offer loans that require a down payment of less than 20 percent of the purchase price. Otherwise, lenders will require the homebuyer to purchase private mortgage insurance (PMI) to protect the lender in the event that the homebuyer is unable to pay.
Inquire about your lender's requirements for a down payment and about special program offers your loan may include.
If PMI is required for your loan, inquire about the insurance's total cost, monthly payments, and duration.
Get the Best Deal that You Can:
Now that you know what each lender has to offer you, you can negotiate with them for the best deal. When you are satisfied with the negotiation, you should ask your lender for a written lock-in that includes the rate, period, and number of points to be paid.
Note: Lock-ins can protect you from rate increases during the processing of your loan, however if
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