How Do I Get a Home Loan? - 11/30/10 08:44 AM
First, you need to choose your lender carefully; your lender should be a financially stable company and have a record of customer satisfaction.  Talk to personal friends who had a good experience with their home loan or your realtor about recommendations of lenders.  Use a local lender, because it is easier to monitor the status of your application, ask questions, local lenders better understand local home values and conditions in your area, and are more likely to handle closing problems more effectively if they occur.  After deciding to get a home loan, interview multiple lenders within a 30 day period.  This … (2 comments)

Understanding an Escrow Account - 11/23/10 08:17 AM
Sometimes you encounter home buyers that do not understand the purpose of an escrow account.  These are separate reserve accounts setup by a mortgage company to pay your homeowners insurance and property taxes when due.  From each mortgage payment, your mortgage company will set aside a required amount to pay your insurance premium and taxes.  These amounts are an estimated amount determine by the mortgage company.   Each year, the mortgage company may adjust the amount to be set aside in your escrow reserve accounts.  If this occurs, your monthly mortgage payment will be adjusted either upward or downward.  By law, mortgage … (0 comments)

Factors That May Affect Home Mortgage Interest Rates - 11/16/10 08:54 AM
Many home buyers and homeowners do not always understand how interest rates are affected.  Normally, a lower interest rate will provide a buyer more money, therefore, giving them the capability to purchase more home.  Interest rates are always fluctuating; therefore, buyer should have a discussion with his lender when to lock-in their interest rate.  Lenders are required to disclose the Annual Percentage Rate (APR) of the loan to their clients.  The APR reflects the yearly interest rate and it is normally greater that the interest rate.  The APR includes the cost of points, mortgage insurance, and any fees included in the loan.  … (0 comments)

What is Loan to Value (LTV)? - 11/08/10 09:08 PM
Some buyers are unfamiliar with the term LTV ratio.  This ratio is the amount of money required by the lender from the buyer in order to get a loan to purchase property.  This value is normally based on the sales price of the property.  For example, if the LTV ratio is 95% and the sales price of the home is $200,000, the buyer would be able to borrow only $190,000 and would be required make a down payment of $10,000.  This ratio reflects the amount of equity borrowers have in their home.  The higher the LTV ratio is, the less down … (1 comments)

What is a Home Warranty - 11/02/10 08:15 AM
Many times home buyers who are buying a home have not heard of, or understand the purpose of a Home Warranty.   Home warranties provide insurance coverage for mechanical breakdowns of appliances and home systems that are not covered by your homeowner's insurance policy.  These types of insurance policies are becoming more popular and the first year's insurance premium normally is paid for by the seller.  The buyer can renew the policy at his expense for additional years of coverage.  The reasons these policies are popular: first, it protects the seller from misrepresenting an appliance or system within the home that stops … (0 comments)

 

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