Research When Deciding on Best Mortgage Loan

We’ve all seen how unpredictable the real estate market can be, which is why it is so important for home shoppers to take their time and carefully research the various mortgage loans available today, and what hat is why it’s so important to take your time and research all of the various mortgage loans available today. Don’t feel pressured into agreeing with anyone and remember, you are the person responsible for the debt.

There are a number of cost factors to consider in becoming a homeowner – not only are you responsible for the monthly payment of principal and interest; you will also be paying for:

• Property, school and possibly municipal utility district (MUD) taxes
• If you’re down payment is less than 20% your mortgage lender may require private mortgage insurance (PMI);
• Homeowner association (HOA) fees,
• Homeowner insurance – this can be paid for out of your escrow account which will increase your monthly payment or you can pay for it separately
• Utilities – electricity, gas, phone, cable, etc.
• Also remember regular home maintenance inside and out – look for a home that is energy efficient, it will help save you some dollars on future utility bills.
• Think ahead – how long do you plan on living in the home? Is there a new car or college expense in your immediate future? If so, can you handle the additional expense?

Follow the advice of your real estate agent or a trusted family friend. Real estate agents are held to a legal responsibility to ensure you are treated fairly. Your sales agreement should include an option to negotiate or make conditions for the final sale. Both you and the seller must agree to any changes.

Make note of any down payment, deposit or earnest money requirements - in the event you cannot get a loan approval, will your money be refunded? If this option is not available – discuss it with your real estate agent.

You can also negotiate the settlement costs – the final amount necessary to close the loan. You can ask the seller to help contribute toward the costs.

If you have any questions regarding the sales agreement, mortgage or working with a real estate agent, contact us and we will research the answer for you; the team at casanuevaguide.com also recommends contacting RESPA (the Real Estate Settlement Procedures Act) for a free copy of their booklet that lists your rights as a homebuyer.

RESPA – is a consumer protection department from HJD that monitors consumer disclosures and ensures homebuyers are protected from fraud.

Mortgage Advice