Home, first-time buyers, mortgages

What mortgage covers

admin — Tue, 03 Jun 2008 20:52:04 +0000

Most loans consist of four parts:
Principal: the amount you actually borrow;
Interest: payment to the lender for the money borrowed;
Homeowners insurance: a monthly amount to insure the property required by most lenders;
Property taxes: the annual city/county taxes assessed on your property.

Most loans are for 30 years, 20, and 15 years. During the life of the loan, you’ll pay more in interest than in principal, usually several time the amount. Due to the way loans are structured, in the first years the monthly payments go toward the interest. In the final years, you’ll be paying mostly principal.

Finding a lender

admin — Wed, 28 May 2008 10:45:49 +0000

You can finance a home with a loan from a bank, credit union, private mortgage company, or various state government lenders. When you decide to buy a house you will have to shop for a loan, which like a regular shopping for any other large purchase. You have to look around for the best price, and every thousand counts. Lenders can offer quite different interest rates and loan fees. The lower interest rate the less money you’ll have to pay in the long run. You will have to talk with several lenders before you pick one. The approval process may take several weeks. The real estate broker that you decide to hire is familiar with lenders in the area. Or you can look in your local newspaper’s real estate section which lists interest rates. You can find FHA-approved lenders in the Yellow Pages of your phone book.

Real estate brokers

admin — Sat, 17 May 2008 15:38:11 +0000

Using a real estate broker is always a very good idea because all the financial details involved in buying a house can be rather confusing. A good real estate agent can guide you through the entire process since he/she is well-acquainted with all the important things. The broker can give you information on the neighborhood, the quality of schools, the number of children in the area, the safety issues, traffic volume, and etc. He or she will help you figure the affordable price range of the homes you’ll want to see. Having an immediate access to homes as soon as they’re put on the market, the broker can save you plenty of time that you would have otherwise wasted driving-around the area. When it’s time to make an offer on a home, the broker can show you different ways to structure your deal and save money. He or she will explain the pros and cons of different types of mortgages, guiding you safely through the paperwork until closing. You don’t have to pay the broker anything since he or she is paid by the home seller.

Special homeownership grants or programs for single parents

admin — Tue, 11 Mar 2008 10:28:36 +0000

There is help available for single parents who want to become homeowners. Although as a single parent, you don’t have the benefit of two incomes, which can qualify for a bigger loan, you may consider getting pre-qualified, so that when you find a house, the buying process will be much quicker. You can contact a HUD-funded housing counseling agency in your area to discuss options that might be available to you. Look around for a HUD home, as they tend to be very good deals. You may also contact your local government to see if there are any local programs that could help you. Look up the blue pages of your phone book and search for local office of housing and community development. You may contact the mayor’s office or county executive’s office to give you some advice.

Why buy instead of renting

admin — Thu, 21 Feb 2008 10:20:25 +0000

A home is a good investment. When you rent an apartment, you make your monthly payments which are basically gone forever.When you own a house, you can deduct the cost of the mortgage loan interest from the federal income tax, and sometimes from the state taxes. This will give you a lot savings each year, because the interest paid makes up most of the monthly payments in the first few years of the mortgage term. You can also deduct the property taxes paid as a homeowner. Additionally, the value of your home may go up, in some cases even double. Finally, you can enjoy your own property, something that’s all yours - a house which is your castle.