The Importance of Finding the Right Mortgage Lender
Buying a home is probably the most expensive purchase you will ever make. Choosing the right mortgage lender can reduce the stress and cost of your undertaking. There are four steps that will get you there. The four steps that I will discuss involve; finding a reference, calculating the costs, paying attention-doing your research and negotiating. Following these steps will make buying a home less stressful and more successful!
What better way is there to find a lender than getting a reference from someone you know. You always want to make sure that you are dealing with a reputable company. Talk to your friends, family, neighbors and co-workers who have recently bought homes. Ask them about their mortgage experience. With a short list in hand, start calling all of the lenders. The local companies who are familiar with the market, will be able to give you more accurate estimates. Then do a search online for competitive programs to see if you can get a better deal.
You also want to make sure that you calculate the costs correctly. Ask each lender about the interest rates, programs, points and a list of the fees and costs. Make sure that you ask each lender the same questions. This way, when you are done, you can compare the costs.
Alway pay attention to what is going on in the market and do your research. Does the lender seem to know his/her business? Will he or she be able to answer all of your questions? Are there signs that the operation is disorganized? Is the lender available when you call, and are your calls returned in a timely manner? If you are not comfortable with your chosen lender, then move on to someone else.
Once you have found the right mortgage lender, it is always a good Idea to negotiate the interest rates and fees. The lenders offer many include extra costs added to the interest, points or fees. This money then goes into the loan officer’s pocket after closing. Ask if any of the costs can be reduced and taken out completely. Then consider locking in the program so that the mortgage rates don’t rise. Go with your gut and make sure you do your research. For more information about choosing the right lender, please visit our website at www.OwnACondo.com.
If you do not follow these very simple steps, then you could end up wasting a lot of time and money through this already expensive process. Take the time to do it right and the rewards and benefits will follow.
Is the Homebuyer Tax Credit Working?
Housing Tax Credit Working
Consumers are just starting to see a ray of hope for the housing market and the overall economy because of the Homebuyer Tax Credit. The housing market has been on the rise and numbers have been increasing for the last seven months. Although it is on the rise, it is up to Congress to make that hope, a reality by building on the momentum that was created by the $8000 home buyer tax credit. There are many ways that Congress can build the momentum and keep the housing market on the upswing.
One way to build momentum is for Congress to extend the home buyer tax credit. Home sales have jumped in recent months and the housing inventory has improved. This has resulted in a stabilization of home prices. Why not keep a good thing going.? If it’s not broke, then don’t fix it! If they stop this homebuyer tax credit too quickly, in other words before the economy turns around, then the economy could end up worse then it started and on top of it be way more in debt.
Now is the time to build on home sales and expand it to all home buyers. Prices are low and it is a great time to buy, especially with the Homebuyer Tax Credit that is slated to expire November 30th. However, this cannot help new purchasers now who write a contract today, because they won’t be able to close before the deadline. Without Congress acting now, the market and our national economy may freeze again, possibly as soon as this month.
There are a number of other actions that can strengthen the economy as well. First of all, make the FHA and Fannie May/Freddie Mac loan limits permanent, those programs are set to expire at the end of the year. Maintaining current loan limits would ensure that families would have access to low cost financing and also refinance problematic loans into safer, more affordable mortgages.
Also Congress should continue to aid in the secondary mortgage market. Without this help, market participants will have no incentive to reach out to lower incomes consumers who have great credit. They need the federal government involvement in the secondary mortgage market. We must ensure that the housing markets works in all aspects of the market at all times and the mortgage capital is provided to all qualified and potential purchasers in a way that promotes sustainable homeownership. It is time to end this downturn and finally recover from all the damage done!
