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Welcome to the Real Estate Triple Play!

By
Real Estate Agent with Colonial Properties LLC

Today's Triple Play is about Financing your Home Purchase:

With all of the news in the Media about Sub-Prime Mortgages, mortgage companies going out of business and homeowner foreclosure rates skyrocketing, it's no wonder those of you still thinking about buying a home are a bit nervous.

It's important to note that there are still many banks and mortgage brokers out there ready, willing and able to write loans for qualified buyers.  Here are three things to keep in mind when shopping around for a mortgage:

  1. Research the company that you are considering for your financing.  Shopping for the best rates and closing costs are no longer the only criteria.  Does the company have a diverse portfolio so that taking a hit in one area of their business will not put them out of business? 
  2. Check out the Loan Officer that you are working with - are they experienced?  Do they follow through with promises and return your calls in a timely manner?  In the end, they need to deliver a clean commitment from the bank, or you could come to the closing table and leave without your new home or investment.
  3. Review the details of the loan.  Ask for a Good Faith Estimate, which will detail all of your closing costs, both fees to be paid to the bank, attorney, etc. and escrows like home-owner's insurance and taxes.  If your loan is costing you more than $5000-$6000 (without paying points) in combined closing costs for a typical home purchase, you're probably paying too much! 

A great REALTOR can help you by educating you about the process of buying a home, including the loan process.  Buyer's Agency allows you to have representation in the transaction and 95% of the time, your Buyer Agent's fee is paid by the Seller!