Buying a New Home – Home Buying TipsWritten by Carrie Reeder
If you in process of looking for your first home, there are some essential steps that you should be aware of. Many times, people fall in love with a home and rush into deal—not considering some important issues. Unfortunately, many of those people end up unhappy with their purchase or end up with a deal gone bad.Avoid this by following suggestions below and ensuring that you have thought out your purchase thoroughly. The most important consideration should be sales price of home. Just because it’s best home in neighborhood, that doesn’t mean that you should pay a lot more for it. In fact, experts tell us that “best” house in neighborhood probably won’t sell for much more than other homes in area. You should look to pay not more than 10-20 more than other homes in area—no matter how much nicer home is. Anything higher than that is based on emotion—not business—and will probably cost you when you go to sell it. Next, you should take a serious look at neighborhood itself. How are school systems rated? Even if you don’t have children this is important because when you go to sell home, your buyers might. Is house located in a convenient area, or would you have to drive excess miles to do your grocery shopping? In addition, you should visit area in day time, as well as night. Does “feel” of area change when it’s dark, or does it still look like a nice place to live?
| | Home Mortgage Loan Information - Which Type of Home Loan is Best For You?Written by Carrie Reeder
If you are considering buying a home, then you may be more than a little confused by all of terms you hear about home loans. After all, lenders throw around words like fixed rate, balloon mortgages and adjustable rate mortgages without a thought. But if you aren’t at least familiar with basics—those terms can be pretty confusing!Here’s a basic guide to three most common types of home loans. Study it, and determine which one is right for you. Fixed Rate Home Loan If you are thinking about buying a home and staying in it until you pay it off, then you will probably want a fixed rate home loan. With this type of loan, you will be assigned a fixed interest rate, and then that rate will not change for life of loan. If interest rates skyrocket, yours will remain same. On other hand, if they plummet, you will likely be paying a higher rate. (You can always refinance in order to get a lower rate.) Adjustable Rate Mortgage (ARM) The interest rate with this type of loan goes up and down with market. In other words, if interest rate is low, rate on your home mortgage will be low, but if it’s high, your loan interest rate will reflect it. And because interest rate on a home mortgage loan affects payments, you will never know from reporting period to reporting period what your monthly mortgage payments will be. This type of loan obviously isn’t for everyone.
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