Tips for Choosing the Right Mortgage Company

Tips for Choosing the Right Mortgage Company

There are many mortgage companies to choose from. How do you know which one is the right one for you?

Taking advantage of the current mortgage rates and the first-time homebuyer's credit is driving many people to mortgage companies across the country to apply for a home loan. But do you know which mortgage company you should choose when it comes time to purchase your home? There are so many to choose from and the options can be overwhelming if you do not know what to look for. Following are some tips for choosing the right mortgage company for your home buying needs.

Mortgage Company or Bank?
Many home buyers choose a mortgage bank over a mortgage company because they feel more secure as a mortgage bank seems more stable and reliable. These institutions are regulated and monitored by the federal government and they have to follow certain rules regarding mortgages and loans. You should check with your current bank about the mortgage rates it would charge before going somewhere else. When you already have an established financial relationship somewhere, you may be given a lower rate or better terms. The only thing to remember when going to a bank for a mortgage loan is that they often have fewer options when choosing between the types of mortgages that you can choose.

Mortgage Brokers
Mortgage brokers are not as stable but they can be one way to get a mortgage. Brokers are not necessarily licensed, but they do have to follow the same laws that banks and other lenders have to follow. In essence, a mortgage broker is a middleman between the banks or lending institutions and you, the buyer. They can search various mortgages to find the best one with the terms that fit your particular financial situation. Before deciding on a mortgage broker, shop around and talk to several of them. Be sure to ask about any fees or charges they impose for their services and always read the fine print before signing anything.

Homebuilders
Did you know you can actually get a mortgage through a homebuilder? It is probably more common than you think. A homebuilder will do much of the work for you when trying to get a mortgage on a home their company has built. Just remember to choose a reputable builder that has been around for many years and will probably continue to be around. Also, be sure to ask about the fees and charges for their services so you are not surprised at the cost when the bill arrives.

If you are the type of person that does not like to share much of your personal information with others, a mortgage broker is probably your best choice. A mortgage bank, however, may be your best option if you have good credit and a stable job. A construction company is ideal if you want a quick mortgage. It all depends on your needs and your financial situation. Just always remember to ask about the fees and read the small print before agreeing to anything.

Four Disadvantages to Buying a Foreclosed Property

Four Disadvantages to Buying a Foreclosed Property

Buying a foreclosed property is one way to get a great deal. Just be sure you know about the drawbacks and problems that could happen so you can be prepared.

A few weeks ago, we told you about some advantages to buying a foreclosed property. While there are many advantages to it, buying a foreclosure is not always the best way to own a home. Buying a foreclosure has many disadvantages that you may not have considered. If you want to take advantage of today's mortgage rates by buying a foreclosed home, consider these disadvantages before making your final decision.

The Procedure
When you are buying a foreclosed property, it is not like making a traditional home purchase. In fact, there are several hoops you have to jump through in order to get a foreclosed home. Most foreclosed homes are sold to home buyers "as is." This means that you buy the home and if something is wrong with it, it is your responsibility. There is no warranty to cover it. If you are not careful, this could end up costing your tens of thousands of dollars to bring the house up to code or even livable conditions.

Liens and Liabilities
Purchasing a foreclosed property often means that you will need to pay any liens or back taxes on the home before you can take ownership. If you are getting the home for a reduced price, paying these fees may still make the home a great deal. However, be aware of these hidden charges before getting too excited about a foreclosed home's price. There could be a chance that you would have to pay more than just the price of the home.

Purchasing a Foreclosed Home at an Auction
There are many auctions that sell foreclosed properties to the highest bidder. You can participate in these auctions and get great deals on foreclosed homes. However, you must be able to have 10 percent for a down payment when you bid on the home and you must also be prepared to show your proof of financing before you will be allowed to sign the dotted line. If you are not prepared for these stipulations, you could bid on the home of your dreams and then have to say goodbye to it.

Returning Owners
It does not happen very often, but there are times when a previous owner may return to the foreclosed home after you have moved in and try to claim their right to the property. In some cases, you may even have a hard time getting them to move out when you purchase the home. There are remedies for these situations, but it can be frustrating and nerve-wracking.

Foreclosed homes are a good way to get a quality home at a bargain price. However, you must know what you are getting into when you purchase a foreclosed home. Consider these four disadvantages and buying a foreclosed home may work out perfectly for you.

Four Advantages to Hiring a New Real Estate Agent

Four Advantages to Hiring a New Real Estate Agent

Finding the real estate agent is the best way to get a deal on a new house. But what type of agent is better - one who is just starting out or one who has been in the business for several years. While both types of agents have their advantages, here are some advantages that a new real estate agent has over the older ones.

With mortgage rates at historic lows and the homebuyer's tax credit about to expire, it's time to jump into the housing market if you have been considering that new home. But what do you do about finding a real estate agent? Do you want to find one who has several years of experience or do you want to find one who is new so you can save money? There are several advantages for both, but here are four advantages of hiring a new real estate agent for your home buying needs.

New Agents are Usually Less Busy
In most circumstances, a new real estate agent has not built up a clientele. It can take years for that to happen so they are willing to take new clients all the time. In some cases, you may even be the realtor's only client depending on how long they have been in the business. As a result, you can expect personalized attention because they are eager to keep you as a client and they do not have to split their time up as much among different clients.

Newer Agents May be Less Expensive
In order to create a client base, a new real estate agent may charge a lower commission just to attract more business from potential home buyers. There are two ways to look at this, however. One way is to look at it as though you are getting a "good deal" by hiring a real estate agent that will work for cheap. The other way to look at it is that you are "getting what you pay for," but it will be up to you to make that decision.

New Agents Tend to Be More Competitive
Real estate agents who are new to the business will tend to be more competitive because they have more energy and a willingness to please their customers. This is true in many businesses, but real estate agents are a different kind of breed. What this means for you is that you will probably save money on the purchase of the home.

New Agents are More Open
If you have dealt with real estate agents in the past who have been doing this for many years, you may notice they are more "salesy" than they are customer oriented. New agents, however, are usually committed to dealing with clients in a personal way. For home buyers, this can be very refreshing because it makes them feel more like a person rather than a customer.

If you are trying to make the decision between a new real estate agent and a seasoned one, consider these four advantages. When in doubt, you will just have to follow your gut feeling and choose the one that you think is right for you.