A Few Points About Interest Rates

Written by Madan "Raja" Ahluwalia

A Few Points About Interest Rates

Less is more

If you're new to investing or real estate and don't knowrepparttar first thing about interest rates, here's a good tip:repparttar 136013 higherrepparttar 136014 interest rate,repparttar 136015 more expensive it's going to be. High interest rates mean you will have to pay back more onrepparttar 136016 money you borrow. Another good rule of thumb is that affordability increases if you use an adjustable rate mortgage (it's easier to qualify this way). Of course, there will be a wide range of prices that you can choose from, depending on what kind of financing you choose.

Not evenrepparttar 136017 Fed knows for sure

The Fed holds a considerable amount of power, but they can't control everything. Mortgage interest rates are affected by many unpredictable political, economic and social events. So there is no guarantee what direction interest rates will go, despiterepparttar 136018 forecasts ofrepparttar 136019 experts. Therefore, make your financial decision based on where things are today including your budget, your needs and your future plans.

5 Secrets to Buying the Best House for Your Money

Written by Madan "Raja" Ahluwalia

5 Secrets to Buyingrepparttar Best House for Your Money

1. Get "Pre-Approved" - Not "Pre-Qualified!"

Do you want to getrepparttar 136012 best property you can forrepparttar 136013 least amount of money? Then make sure you are inrepparttar 136014 strongest negotiating position possible. Price is only one element inrepparttar 136015 negotiations, and not necessarilyrepparttar 136016 most important one. Often other terms, such asrepparttar 136017 strength ofrepparttar 136018 buyer orrepparttar 136019 length of escrow, are critical to a seller. In years past, I always recommended that buyers get "pre-qualified" by a lender. This means that you spend a few minutes onrepparttar 136020 phone with a lender who asks you a few questions. Based onrepparttar 136021 answers,repparttar 136022 lender pronounces you "pre-qualified" and issues a certificate that you can show to a seller. Sellers are aware that such certificates are WORTHLESS, and here's why! None ofrepparttar 136023 information has been verified!

Many times unknown problems can come torepparttar 136024 surface! Some ofrepparttar 136025 problems I've seen include recorded judgments, alimony payments due, glitches onrepparttar 136026 credit report due to any number of reasons both accurately and inaccurately, down payments that have not been inrepparttar 136027 clients' bank account long enough, etc.

Sorepparttar 136028 way to makerepparttar 136029 strongest offer today is to get "pre-approved". This happens AFTER all information has been checked and verified. You are actually APPROVED forrepparttar 136030 loan andrepparttar 136031 only loose end isrepparttar 136032 appraisal onrepparttar 136033 property. This process takes anywhere from a few days to a few weeks depending on your situation. It's VERY POWERFUL and a weapon I recommend all my clients have in their negotiating arsenal.

2. Sell Your Property First, Then Buyrepparttar 136034 House

If you have a house to sell, sell it before selecting a house to buy! Contingency sales aren't nearly as strong as one that comes in with a ready, willing and able buyer. Consider this scenario: You've foundrepparttar 136035 perfect house - now you have to go make an offer torepparttar 136036 seller. You wantrepparttar 136037 seller to reducerepparttar 136038 price and wait until you sell your house. The seller figures that this is a risky deal, since he might pass up a buyer who DOESN'T have to sell a house while he's waiting for you. So he says OK, he'll dorepparttar 136039 contingency but it has to be a full price offer! You have now paid more forrepparttar 136040 house than you could have because ofrepparttar 136041 contingency, and you have to sell your existing house in a hurry! Otherwise you loserepparttar 136042 house! So to sell quickly you might take an offer that's lower than if you had more time. The bottom line is that buying before selling might cost you THOUSANDS of dollars.

If you're concerned that there is not a house onrepparttar 136043 market for you, then go on a window-shopping trip. You can identify possible houses and locations without falling in love with a specific house. If you feel confident after that then put your house onrepparttar 136044 market.

Another tactic is to makerepparttar 136045 sale "subject to seller finding suitable housing". Adding this phrase torepparttar 136046 listing means that WHEN YOU DO FIND A BUYER, you will have some time to findrepparttar 136047 new place. If you don't find anything to your liking, you don't have to sell your present home.

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