Thinking About Purchasing A New Home?

Below you will find helpful tips and articles covering the A-Z’s towards purchasing a new home. After that, contact FreeLoanComparison.com to get started.

• Buying A New Home
  Mortgages are available from a wide variety of sources, including mortgage companies, commercial banks, thrifts, and other financial institutions. You may also consider the financial institution where you have your checking or savings account. Your real estate sales professional is likely to have information about who to work with to get a mortgage in your area. Also, ask friends, relatives, and colleagues about where they got their mortgages.
  
  
• First Time Home Buyer:
  Is buying a home the right decision for you? How do you get started? How much house can you really afford? You can find the answers here:
  
  
  • Purchasing Your Home:
    As you search for the FreeLoanComparison.com mortgage and lender that are right for you, this section helps you better understand the choices and your finance options.
  
  
  • Becoming a Homeowner:
    Is buying a home the right decision for you? How do you get started? How much house can you really afford? You will find the answers to these questions in this section, which details the steps you and your FreeLoanComparison.com lender partner will take to help you qualify for a mortgage.
  
  
  • Loan Prequalification:
    Because they sound similar, people often think that being pre-qualified for a home loan is the same thing as being pre-approved for one. However, being pre-qualified for a home loan is quite different than being pre-approved for one, and it is important to know the difference and not confuse the two.
  
  
  • Mortgage Insurance:
    Mortgage insurance is a policy that protects lenders against some or most of the losses that result from defaults on home mortgages. It’s required primarily for borrowers making a down payment of less than 20%.
  
  
  • Title/Escrow:
    Real Estate Settlement Procedures Act (RESPA) limits the amount of money a lender may require the borrower to hold in an escrow account for payment of taxes, insurance, etc. RESPA also requires the lender to provide initial and annual escrow account statements. The newest escrow account regulations became effective in October 1997.
  
  
  • Mortgage Costs:
    Mortgage settlement--sometimes called mortgage closing--can be confusing. A settlement may involve several people and many documents and fees. This information will help you understand all that is involved. Although the focus of this guide is on settlements for home purchases, much of it will also be useful if you are refinancing a mortgage.
  
  
• New Home:
  Mortgages are available from a wide variety of sources, including mortgage companies, commercial banks, thrifts, and other financial institutions. You may also consider the financial institution where you have your checking or savings account. Your real estate sales professional is likely to have information about who to work with to get a mortgage in your area.


• Buying Your Home:
  The mortgage application process can be made easier with a few tips on what to expect. Your FreeLoanComparison.com lender partner will need basic information from you to begin the process. This information usually includes your full name, current address, Social Security Number, employment and asset information, and property address of the home you want to purchase.


• Becoming a Homeowner:
  Is buying a home the right decision for you? How do you get started? How much house can you really afford? You will find the answers to these questions in this section.


• Loan Prequalification:
  Because they sound similar, people often think that being pre-qualified for a home loan is the same thing as being pre-approved for one. However, being pre-qualified for a home loan is quite different than being pre-approved for one, and it is important to know the difference and not confuse the two.


• Mortgage Insurance:
  Mortgage insurance is a policy that protects lenders against some or most of the losses that result from defaults on home mortgages. It’s required primarily for borrowers making a down payment of less than 20%.


• Escrow:
  Once you close your purchase transaction, you may have an escrow account or impound account with your lender. This means the amount you pay each month includes an amount above what would be required if you were only paying your principal and interest. The extra money is held in your impound account (escrow account) for the payment of items like property taxes and homeowner’s insurance when they come due. The lender pays them with your money instead of you paying them yourself.


• Mortgage Costs:
  Most people associate settlement costs with mortgage loan charges. These fees and charges vary, so it pays to shop around for the best combination of mortgage terms and settlement costs. Mortgage-related costs that may apply to your loan include the following items.


• Buying a Vacation Home:
• Buying a Vacation Home:
  It’s vacation season. Whether you’re enjoying a beachfront house, country cottage, or mountain chalet, chances are you have a vision of calling your favorite vacation spot "home" one day.


• Finding A Home:
  Select a community that will allow you to best live your daily life. Many people choose communities based on schools. Do you want access to shopping and public transportation? Is access to local facilities like libraries and museums important to you? Or do you prefer the peace and quiet of a rural community?


• Selecting A Home:
  Some home buyers want the convenience and amenities of a new home. Others want the character of an older home. This section will provide you with insight as to what to look for when you start looking for a home to finance through a FreeLoanComparison.com lender partner.


• Down Payment:
  A mortgage loan down payment for a new home purchase is usually between 3% and 20% of the total cost of the new home. The amount of the required mortgage down payment depends on your credit history, income, the cost of the home, and the type of mortgage you choose


• Credit Score:
  A credit score is a single number that helps mortgage lenders and others decide how likely you are to repay your outstanding debts. One kind of credit score is a FICO score (FICO stands for Fair Isaac Corporation Inc., the company that developed a common scoring method). FICO scores range from 400 to 900 points.


• Mortgage Costs:
  Mortgage settlement--sometimes called mortgage closing costs--can be confusing. A settlement may involve several people and many documents and fees. This information will help you understand all that is involved.


• Buying a Condo:
  You might be considering buying a condo as a first dip into the real estate market. This might be due to the fact that you are just starting out as a family, or you are a student or other younger person who wants to own something, and not just see their money sent off every month towards rent, with no returns at all. On the other hand, you might be an older person whose children have all moved out and who wishes to take advantage of the sale of the family home by moving somewhere smaller and saving the leftover profits from the sale.


• - Lender Requirements:
  In today’s market, increasing numbers of home buyers are turning away from single-family homes and looking at lower-priced condominiums and townhomes, because they can buy more home for less money. However, along with that apartment, co-op or condo comes a homeowner’s association (HOA), which governs the units and complex.


• Becoming a Condo Owner:
  Condominiums and townhouses offer an affordable option to single-family homes in many markets, and they’re ideal for those who appreciate a maintenance-free lifestyle. But before you buy, make sure you do your legwork. These are some of the important elements to consider:


• Prequalification:
  Because they sound similar, people often think that being pre-qualified for a home loan is the same thing as being pre-approved for one. However, being pre-qualified for a home loan is quite different than being pre-approved for one, and it is important to know the difference and not confuse the two.


• Mortgage Insurance:
  Like home or auto insurance, mortgage insurance requires payment of a premium, is for protection against loss, and is used in the event of an emergency. If a borrower can’t repay an insured mortgage loan as agreed, the lender may foreclose on the property and file a claim with the mortgage insurer for some or most of the total losses.


• Tips on Buying Your Home:
  You probably started the home buying process in one of two ways: you saw a home you were interested in buyingor you consulted a lender to figure out how much money you could borrow before you found a home (sometime called pre-qualifying)...


• Mortgage Costs:
  Mortgage settlement--sometimes called mortgage closing costs --can be confusing. Mortgage closing costs may involve several people and many documents and fees. This information will help you understand all that is involved.


• Reverse Mortgage:
  It used to be that if you were age 62 or older, there were only two ways to get cash out of your home. You could sell it or you could borrow against your home equity. But now, with reverse mortgages, seniors can tap into the home equity they’ve built up without moving or taking on extra debt.


• Reverse Mortgage:
  If you’re just starting out and want to learn more about reverse mortgages, we recommend you read Fannie Mae’s brochures and fact sheets that describe each product. Our Fannie Mae’s Find a Counselor Search can help you locate a reverse mortgage counselor in your area.


• Understanding Reverse Mortgages:
  Unlike a traditional mortgage that you pay back each month, a reverse mortgage makes payments to you. You can get these payments in a lump sum to cover an unexpected bill. You can get them as a regular supplement to your monthly income. Or, you can get them at intervals and amounts that are best for you.


• Qualifying for a Reverse Mortgage:
  Individual reverse mortgage products may have particular requirements. Here are a few basics that apply to Fannie Mae’s product and the U.S. Department of Housing and Urban Development’s (HUD) Home Equity Conversion Mortgage (HECM):


• Reverse Mortgage Solutions:
  Your options for a reverse mortgage include: Home Keeper Mortgage, Home Keeper for Home Purchase Mortgage and The Home Equity Conversion Mortgage (HECM).


• Home Keeper Mtg:
  Whether you need a lump sum to pay an unexpected hospital bill or a regular payment stream to supplement your monthly income, the Home Keeper mortgage lets you borrow against the value of your home and receive loan proceeds according to a payment plan you select.


• Home Keeper Purchase Loan:
  If you currently own your home free and clear of any mortgage debt, the Home Keeper for Home Purchase mortgage helps you buy a new house that better fits your needs. You make a small down payment with your own money and receive a Home Keeper for Home Purchase loan for the rest of the purchase price.


• Home Keeper Equity Loan:
  A Home Equity Conversion Mortgage (HECM) is a type of home loan insured by the federal government that lets homeowners age 62 or over with little or no remaining balance on their mortgage convert their equity into cash.


• Investment Property:
  Welcome to the potentialy lucrative (and confusing) world of apartment financing. It may be worth your time to better understand this important aspect of property investment.


• Rental Property:
  


• 2-4 Units:
  An important form of affordable housing for low-to moderate-income borrowers


• Multi-Family:
  An important form of affordable housing for low-to moderate-income borrowers


• Mortgage Solutions:
  Choosing a home mortgage depends on your wants and needs. Regardless of your reason for mortgage refinancing -- be it to lower monthly payments or build equity faster -- you should contact several mortgage lenders.


• Mortgage Costs:
  Mortgage Closing Costs can be high, so it pays to shop around and negotiate with the seller, your lender, and your attorney or settlement agent. The less you have to pay in settlement costs, the more funds you will have for other things.


• Other:


• Apartment Financing:
  Welcome to the potentialy lucrative (and confusing) world of apartment financing. It may be worth your time to better understand this important aspect of property investment.


• Home Construction Loan:A Home Construction to Permanent mortgage combines financing for the purchase of land, the construction of a new home, and a permanent mortgage into one loan with one closing.
  


• Lot Loan:
  Down payments as low as 10%, Interest only Lot Loans available, Second and vacation home lots/land, too


• Avoid Foreclosure:
  If you are unable to make your mortgage payment: Don’t ignore the problem.


• About Predatory Lenders:
  f you are a homeowner who needs money to pay bills or for home repairs, you may think a home equity loan is the answer. But not all loans and lenders are the same--you should shop around. The cost of doing business with high-cost lenders can be excessive and, sometimes, downright abusive.


• VA, FHA, Other:
  Interested in either a FHA or VA loan? START HERE:


• Loan Types:
  
  • Fixed Rate Loans:
    Fixed-rate mortgages are the most common mortgage for first-time homebuyers because they’re stable. Typically the monthly mortgage payment remains the same for the entire term of the loan - whether it’s a 15-year, 20-year, 30-year, or 40-year mortgage allowing for predictability in your monthly housing costs.
  
  
  • Adjustable Rate Loans:
    Adjustable-rate mortgages (ARMs),/a> are loans with interest rates that change. ARMs may start with lower monthly payments than fixed-rate mortgages, but keep the following in mind:
  
  
  • Seconds/HELOC’s:
    More and more mortgage lenders are offering home equity lines of credit. By using the equity in your home, you may qualify for a sizable amount of credit, available for use when and how you please, at an interest rate that is relatively low.
  
  
  • Reverse Mortgage:
    It used to be that if you were age 62 or older, there were only two ways to get cash out of your home. You could sell it or you could borrow against your home equity. But now, with reverse mortgages, seniors can tap into the home equity they’ve built up without moving or taking on extra debt.
  
  
  • Home Improvement Loan:
    Home improvement loans offers a variety of ways to finance your needs for property improvements and repairs. For example, you can use a home improvement loan to buy a home and repair or improve it.
  
  
• Fair Lending:
  To create equal housing opportunities for all persons living in America by administering laws that prohibit discrimination in housing on the basis of race,color, religion, sex, national origin, age, disability, and familial status.


• RESPA:
  RESPA is about closing costs and settlement procedures. RESPA requires that consumers receive disclosures at various times in the transaction and outlaws kickbacks that increase the cost of settlement services.


• Questions or Comments?
  
• Links:
  


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For more helpful mortgage tips, contact FreeLoanComparison.com today!

Last update: November 14, 2008