Watch out for the good faith estimate.

The day has finally come when you are going to be a home owner.  You are scheduled to be there bright and early to finish up and get your keys.  Instead of just waiting for the time to come, there are some things you need to take care of.  There is a checklist of what you need to do before walking into the closing room.
The first thing you should do is go over the good faith estimate. You will be given one of these to let you know what monies you should have with you at closing.  You will want to go over every line to make sure the figures are correct.  It is time to redo the math to determine no mistakes were made.  This can happen and so can so many other things.
The good faith estimate is given to you within three days of applying for your loan.  There are basically three elements on this document.  The loan fees, the interest rate, and the points.  It is the fees which you want to take a close look at when examining this document.
There are so many fees the lenders charge it is almost scary.  You have the typical loan origination fee. Then you may have a processing fee, a registration fee, a document preparation fee, and many more.  You can ask for each and every one of these fees to be explained, reduced, or even done away with when it comes time to actually sign the loan paperwork.
The lender will most likely state that this is just company policy and the fees are normal charges.  It is these fees which can cause catastrophic surprises at the closing table.  The good faith estimate may state your closing fees will only amount to $800 or so.  When you get to the table, the fees have jumped to over $2,000.  Unfortunately this happens more and more often these days.
The lender will lock in the interest rate and the points cap to ensure you will use their services to obtain the loan.  In actuality, it is the lender's fees which should be locked in place.  These are day to day fees which may be necessary to pay and yet do not fluctuate a great deal over a short period of time.  Yet from the time you apply to the time you close  the processing fee went from $50 to $250.  When you ask why you are told that is the fee the bank is now charging.  The question should be why is there a processing fee when there is a  loan origination fee?  This is something most buyers will just assume is a natural thing and opt to pay it to save face.  It is not necessary to do that.
When you speak with a lender, you can ask to have each fee broken down so you can understand them.  Many times when you do this and start asking questions, the loan officer will adjust the rates and keep the fees more simple.  This will ensure you get the actual good faith estimate you are supposed to receive.  When you are all done negotiating with your lender, do one other thing.  Get it all in writing.  You do not want any more surprises at the closing table.  By making the lender put in writing exactly what they are going to charge you for each service, and making them list each service individually, you can save yourself quite a bit of money at the closing.  Money you can spend on the new home you just bought.
Contact or visit Gordon Pate home page for more details for the good estimate.

New Home Buying Tips

Buying a new home is a big decision in your life. In order to make sure that you get the most out of the buying experience there are many things that you should take into consideration. Think about it this way. Do you really want to make a mistake when making such a big purchase? The answer to this question is most definitely no. In order to make sure that you do not make any mistakes you should take a look at the new home buying tips listed below. They will help you to get the home that you want, as well as one that you can afford.
 1. The number one tip for new home buyers is to not get in over your head. In other words, you can only afford what you can afford. You never want to make the mistake of buying something that you cannot pay for each month. If you do this your home will end up in foreclosure before you ever know what hit you. And obviously this is something that will cause you more problems than you ever thought possible.
 2. There are many different types of new homes for sale all over the world. For this reason you should not jump into anything until you know exactly what you are getting. Take your time when searching for a new home, and then when you think that you have found the one for you take a step back and look at the entire situation before you move forward. Not comparison shopping when buying a new home is one of the biggest mistakes that you could ever make.
 3. If you need help go find it. You can get a lot of information on buying a new home online, or by simply buying a book on the subject. And if that does not work for you, there is nothing wrong with getting the assistance of a real estate agent. They would be more than happy to help you search out a home that meets all of your needs.
 Overall, these three new home buying tips should put you on the right track to success. Although there is much more to buying a new home than the information listed above, the tips will at least give you some direction. And then from there you can take things forward on your own time.
This site offer valuable information on how to get the best value for your hard earned money.

Know what to Look for in a New Home

Do you know what to look for in a new home? If so, you should be ready to move forward with the buying process. But on the other side of things, if you have never purchased a new home before you may be a bit out in the dark. The fact of the matter is that buying a new home is not always the easiest thing to do. And if you do not know what you are looking for you will never know for sure if you got what you wanted in the end.
 The number one thing to look for in a new home is something that suits your budget. Contrary to popular belief, the money that you have and the monthly payment you can afford is the number one determining factor when buying a new home. The bottom line is that if you cannot afford to buy something you should not do so. Do you know what will happen if you buy a new home that you cannot afford to pay for each month? The answer is quite simple. You will more than likely lose it due to foreclosure. And obviously this is something that you do not want to deal with.
 The next most important thing to look for in a new home is what you need to match your own living situation. In other words, is there something in particular that you really need from your new home? Some buyers know that they want to live in a condo, or maybe have a certain number of bedrooms so that their children have more space to themselves. Make sure that you take your personal needs into consideration when buying a new home. After all, if you are going to make such a big purchase you might as well get what you want. Just remember, you should never buy more than you can afford!
 Overall, knowing what to look for in a new home will differ from buyer to buyer. You should know how much money you have as well as what exactly you are looking for. This way you can be rest assured that your new home is something that you will be happy to live with for many years to come.
Look for Gordon Pate when you visit Bryan/College Station when shopping for new Home .

Homes and Mortgages

 Buying a new home is a huge step in anybody’s life. In fact, a home is usually the largest purchase that you will make. With that being said, you need to know what you are doing as far as buying a home is concerned. And a lot of this has nothing to do with the actual property that you hope to purchase. Instead, you need to be worried about how you are going to make the purchase. So many buyers think that they can afford more than what they can actually handle. And to take this a step further, these same buyers do not have a lot of knowledge when it comes to the mortgage industry.
 Unless you can afford to buy a home with cash you are going to need to take out a mortgage; there is no two ways about it. Luckily, there are many different mortgage options that you can look into. The only problem is that so many people think that a mortgage is a one ring show. In other words, they are under the impression that there is only one type of mortgage to choose from. And when it comes down to it, nothing could be further from the truth.
 Generally speaking, you will want to become familiar with both fixed and adjustable rate mortgages. If you only look into one or the other you may find out in the end that you spent more money than you had to. A fixed rate mortgage is exactly what it sounds like. You will have the same rate for the entire length of your loan. With a fixed rate mortgage you can choose from terms ranging from 15 to 40 years. The choice is yours, and you will have to base this on your own personal situation. On the other side of things you can also consider an adjustable rate mortgage. With these you will not be locked into one rate, but instead have a rate that fluctuates based on the industry. These are great if rates stay low, but if they begin to climb you are going to find yourself spending more money.
 Overall, a mortgage is something that you will probably need if you are buying a new home. Instead of agreeing to the first type of mortgage you come across, why not search around a bit? Not only are there different options to choose from, but you can also get better rates from some lenders.
 Look for Gordon Pate when you visit Bryan/College Station when shopping Homes.

Should You Buy a Fixer Upper?

Many homebuyers have motivation for buying a fixer upper.  That is, a home that is not in the best of condition and so, is being sold at a low price.  One of the reasons that many buyers purchase fixer uppers is because of the low price.  Other buyers see fixer uppers as an investment opportunity.  Since the home can be purchased at a low price, fixed up, and then resold, it presents an opportunity to make some money on the home.
 If you are interested in purchasing a fixer upper it is important to realize a few facts about this type of housing.  First, it can take a lot more work to fix up a home, than you might first realize.  Not only does fixing up a home require work, it also calls for time and money – which many people do not have a lot of.  People who attempt to fix up a home for the first time often find that they have underestimated the amount of time and money that it would take to do the work.  Not only that, they also overestimate the value of the home after repairs have been made.
 That doesn’t mean that it’s impossible to make a profit from fixing up a home.  Instead, you should have a realistic view of home much time and money it will take to fix the home and the value the home will have once the work has been complete.  Lowering your expectations also lowers the likelihood that you will be disappointed when the process is complete.
 Are you thinking about living in the home while you fix it up?  If so, it might be an eye opener for you, especially if you have never lived in a home in such a condition.  It might be difficult to live in a home and fix it up at the same time.  Why?  Because you have to worry about the everyday living expenses.  Not only that, it can be easy to get caught up in making the home livable for yourself rather than make it saleable.
 If you’ve never worked on a fixer upper before don’t start with the most dilapidated home you can find.  Instead start with a home that is structurally sound, but in need of some cosmetic changes, like new carpet or paint.  You can do these kinds of repairs inexpensively either by yourself or by hiring someone else.
 You can often find good fixer upper opportunities through properties that have been foreclosed.  Often foreclosed properties can be purchased well below their market value.  A fixer upper that increases in value with some renovations can create a generous profit margin.
 Before you purchase a fixer upper property you should have it professionally inspected.  This will give you a good idea of what changes need to be made to the property.  Once you have a better idea of the exact investment you need to make, it will be easier to make a decision about the particular piece of property.  As long as you have a realistic view of the work that it takes to improve the property and the value you will receive, you can make an educated decision about a fixer upper purchase.
This site offer valuable information on how to get the best value for your hard earned money.

Shopping For a Home Loan

 Next to shopping for the home itself, shopping for the home loan can be just as cumbersome.  For such a large amount of money, you want to make sure you are getting the best deal possible.
 Loan Elements
There are four key elements of your home mortgage payment: the principle, interest, taxes, and insurance.  The principle is the amount of money that your are borrowing, less any down payment made.  The interest is the cost of borrowing, expressed as a percentage of the total amount that you borrow.  The money for your property taxes are put into an escrow account until it is time to pay them.  Home insurance is required by most lenders.  If your down payment was less than 20 percent, you will also be responsible for paying private mortgage insurance.
 Types of Loans
There are several different kinds of home mortgages from which you can choose.  The major factor to use in the decision of which home mortgage to borrow is the length of time that you plan to be in your home.  For example, if you plan to remain in your home for a long time, a fixed mortgage is perhaps the best mortgage to choose.
 The two major kinds of home mortgages are fixed-rate and adjustable-rate.  As the name suggests, a fixed-rate mortgage, FRM, has an interest rate that doesn’t change over the life of the loan.  Your monthly mortgage payments will never change.  FRMs are typically available for 15, 20, or 30 years.  With an adjustable-rate mortgage, ARM, the interest rate varies depending on current market rates.  In most cases, the initial interest rate for an ARM is lower than that of the FRM.  If you are interested in lower monthly payments for the first few years of your loan, an ARM is a good choice.
 A balloon mortgage is yet another type of home mortgage loan that you can obtain.  This type of loan has a lower initial interest rate for five to seven years.  After that time, the entire balance of the loan is due, hence the term “balloon” mortgage.  Balloon mortgages are best if you are planning to sell your home, refinance it, or pay it off prior to the balloon payment due date.
 Choosing a Loan
Now that you know the components of your home mortgage and the types of home mortgages you can choose, how exactly will you make a final decision?  This will depend entirely upon your personal situation.  As mentioned previously, the length of time you plan to live in the home is a key factor.  You should also consider your career and salary for the length of time you will have your home mortgage.  Do you expect your salary to remain the same or increase the length of your loan?  Are you comfortable with the uncertainty an ARM can present as far as monthly home mortgage payments?
 Also consider the cost of the loan.  What is your interest rate for the loan?  Consider also the fees charged by the lender.  You may be able to negotiate a waiver of some of the fees.  Ultimately, you want to pay the least amount of money for a home mortgage loan.

 Look for Gordon Pate when you visit Bryan/College Station when shopping for Home Loan

Saving For a Mortgage Down Payment

Even though many lenders that offer programs to assist buyers without a mortgage down payment, it is still a good idea to save up as much as you can.  Having a mortgage down payment benefits you in many ways.

 The more you have for a mortgage down payment, the more you can afford to pay for a home.  Let’s say for example, that based on your income and debt level you are able to borrow $100,000 from a lender.  That means you can afford a home that is priced at $100,000 or lower.  If you were to have a $10,000 down payment on your home, you would be able to purchase a home priced at $100,000.
 Not only does a higher mortgage down payment allow you to purchase a higher priced home, it can also reduce the amount of money that you spend each month on your mortgage payment.  “How is that?” you ask.  Lenders have found that there is a higher rate of mortgage default by home buyers that a mortgage down payment that is less than 20 percent of the sale price.  This means that on a home priced at $100,000, your mortgage down payment was less than $20,000.
 For extra protection, the lender requires that you pay private mortgage insurance each month.  This insurance premium increases the amount of money you pay each month.  You must pay this insurance until you have 20 percent equity in your home, or in this case $20,000.
 Saving for a mortgage down payment doesn’t come naturally, especially if you aren’t used to saving money in your current financial situation.  With some adjustments to your spending, you can easily put aside some funds to use toward your mortgage down payment.
 To figure out how you can start saving money, you have to first analyze your current spending.  Take some time to document your current income and spending each month.  As you examine your spending habits, look for ways that you can decrease the amount of money that leaves your budget each month.  This might call for some lifestyle changes and sacrifices on your part.
 There are a few necessities that you cannot cut out of your budget, this includes the cost of housing, transportation, medication, food, and utilities.  Even within these necessities, you can find ways to spend less money.  For example, the kind and amount of food you eat can have an affect on your budget.  You can consume less power to reduce your monthly power bill.
 Outside those items that are necessary for living, you can look for ways to cut down on spending.  Cable television might be something you can cut out of your budget.  Pay close attention to leisure and impulse spending.
 Once you’ve determined how you can reduce your spending, the next step is to start saving.  Calculate the amount you plan to cut on spending and start putting this money into a savings account each month.  The earlier you start saving, the more you will be able to save up for a mortgage down payment.

 Look for Gordon Pate when you visit Bryan/College Station.