Home Building Tips Home Buying Tips

Building a Home, Dollar by Dollar

Home buying can have a tricky foundation.

 Mortgage rates vary daily

Most home buyers don’t realize that mortgage rates can fluctuate day to day.  There are many factors  that determine mortgage rates,  and minimal rate changes can mean thousands of dollars a year. Don’t stop at the first home mortgage rate you see—shop around.

Mortgage and lender fees are negotiable!

The lender will always have fees… END OF STORY.  There are many fees at a closing, the good news is shop around and see what the fees are.  Not only are the different from lender to lender, they also are negotiable.  So always shop for your home loans.

FHA home loans are available to all buyers

An FHA Loan is a loan that is insured by the Federal House Administration.

These home loans aren’t just for First Time Home Buyers,  This is not the case. In fact, these loans are available to all buyers who meet eligibility requirements. Many buyers like these home loans because of a a minimal down payment, relaxed credit score requirements, low cost, and low interest rates.

Interest rates on ARMs

ARM IS-adjustable rate mortgages

They do often increase after five years, but they can also decrease. The interest rate on an ARM is made up of two parts: the margin, which is a fixed percentage and the index, which goes both up and down with the general movement of interest rates. If you’re planning on living in a home only for a few years, an ARM could be a good loan option.

Pre-qualified doesn’t mean you have the keys in your hand

When you’re “pre-qualified,” a lender has figured out approximately how much you can afford, but they haven’t run your credit or requested any sort of documentation to verify the information you provide. It is not until the lender has approved your loan under these conditions that you have secured the financing for your home purchase.