This 12 issue newsletter focuses on ways to get the most out of your home, by giving current and timeless advice on refinancing, buying your first home and how to avoid common mistakes made by homeowners, wannabe homeowners and renters. So whether you are buying, refinancing or thinking about either, every issue covers a topic that will help you no matter what stage of homeownership you are in.

ISSUE 4

Consider Financing Options Before House Hunting

The Process Begins With Credit Check

Low interest rates and competing home loan offers have sparked a real estate frenzy, but many first time homebuyers don't know how to begin financing a home.

For John Jones, a first-time homebuyer, shopping for real estate started long before he began touring homes. It started with a crash course in financing options. Until then, he knew little about home loans.

"Absolutely nothing ... I knew you got a loan to buy a house, that's about it," Jones said.

Jones did a lot of research online, but said the overload of information was confusing. That's the reaction most first-time buyers usually have.

A lot of first-time homebuyers think they have to have a sizable down pmt when that's not necessarily the case because the 100 percent product, and even the ones where closing costs are absorbed, are really prevalent nowadays.

The process begins with a credit check, just like opening a charge card. Real estate agent Sarah LaComa said even problem credit often doesn't stop buyers from being approved for a home loan. "There are a lot of credit counseling agencies that can assist the first-time homebuyer with their credit, if there are some issues they need to take care of," LaComa said.

The loan approval process is usually fast and includes dozens of options. The most popular option now is the zero-down deal. There are loans where you can finance 100 percent and even closing costs along with it.

But we admit putting some money down is often what we recommend. We also help buyers
decide what kind of Mortgage is best based on several simple questions.

We can look at an adjustable rate Mortgage if they're going to be in a home a shorter length of time, whether it be three to five years. The advantage is you can get a lower interest rate.

Going through that process before starting a house hunt gives buyers more leverage when making an offer.

"If you're going to negotiate and a seller sees you have an approval letter from a Mortgage company that says you're good to go and you can close within a two- to three-week period, that makes it easier to negotiate terms in your favor," LaComa said.

  Understand that a Mortgage and the purchase of a home is the usually the single largest transaction of a persons life.  As such you owe it to yorself to be assured that your Mortgage Planner is well versed on the different products and takes the time to go over your entire financial picture as well as your goals and objectives so that the mortgage fits your needs both today and tomorrow.