The most important part of financing is your knowledge of the options available. There are mortgages to meet everyone's needs. These summaries will help you narrow your search.
A mortgage that allows the lender to adjust the mortgage's interest rate periodically on the basis of changes in a specified index. Interest rates may move up or down as market conditions change.
A short-term fixed-rate loan involves small payments for a certain period of time with the balance due in a single large payment at a specified time. Generally, the homeowner must either refinance or sell.
The payment of extra money on a loan now so as to provide a lower interest rate. To buy-down a mortgage, the buyer pays additional points to the lender, which will decrease the interest rate for a specific period.
First mortgages up to loan amounts mandated by Congress, which meet the qualifications for sale or delivery to either the Federal National Mortgage Association (FNMA) or the Federal Home Loan Mortgage Corporation (FHLMC).
A structured, short-term loan to provide funds necessary to begin construction on buildings or homes.
A mortgage loan that is made by an institutional lender without the inclusion of government guarantees such as VA or FHA loans.
The convertible ARM is a combination of both fixed-rate and adjustable rate mortgages, allowing the best of both options in one package.
A mortgage for when payment isn't sufficient to cover both principal and interest, and the payment of interest is postponed until a certain date at which time it's added to the principle.
Federal Housing Administration (FHA) low-rate loans are available to Americans with smaller incomes who are interested in modestly priced homes. Down payment requirements are usually lower.
The interest rate you pay and the monthly principal and interest payments are agreed upon from the outset and will not change throughout the entire term of the mortgage.
A corporation within the U.S. Department of Housing and Urban Development. It guarantees the payment of principal and interest on all of its pass-through securities, and it's backed by the U.S. Government.
This is a long-term mortgage where the borrower agrees to increase payments each year by an agreed amount. The added money is applied directly to the outstanding principal on the mortgage.
Similar to an Adjustable Rate Mortgage, this type of mortgage allows the interest rates and payments to be adjusted periodically according to an index.
A type of mortgage where the property's equity serves as security for payments made by the lender to the borrower. Generally paid out upon the sale of the property.
A mortgage where the payments are only guaranteed for three, four, or five years. The borrower is allowed to refinance at the end of the term at the interest rate then applicable.
It is a loan arrangement where two or more parties participate in the purchase of real estate and share the appreciation and tax deduction. Similar to shared equity mortgages.
Evaluate as you drive though a community. Consider the following questions as a basis for determining your location needs:
Keep your eyes open and your notebook in hand as you walk through a potential home. Consider the following questions as a basis for determining your needs as a homeowner:
Think carefully about each house you see and don't be in a hurry. Joanne can point out the pros and cons of each home from a professional standpoint.
Making an offer to buy a home entails many factors. You and Joanne will discuss the following factors prior to putting the offer on the table:
The seller will either accept the offer as presented, or make a counter offer and either you will agree to the terms in counter offer or you will submit another proposal. When all the parties involved have agreed upon the details, initialed any revisions, and signed the final agreement, then an offer becomes a contract.
Sales contracts may differ significantly yet all should clearly set forth the responsibilities and privileges of all the parties involved. It is a legally binding document that protects each party. Carefully review the terms of the contract. The sales contract should include the following:
Once the contract is signed, Joanne will continue to be your advocate and ensure that your best interests are served. Some of the details they will be available to handle are:
There are two main purposes of the final walk-through. First, you want to make sure that everything that was agreed upon with the seller has been taken care of. Second you want to check that the home is in the same condition it was when you signed the contract for purchase of the home. During the process of moving out or completing necessary repairs prior to moving, it is possible that damage has occurred or that appliances are no longer working properly. All appliances should be functioning.
This is the actual transfer of property title and keys. On the day of the closing Joanne will accompany you to the agreed upon location (usually specified in the contract) where you will generally meet the seller, the seller's agent, and a representative of the title company. You will be required to pay all fees and closing costs with a method of "guaranteed funds", such as a cashier's check.
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