Terms of Use Table of Contents 1. Obtain information from several lenders 2. Obtain all important cost information 3. Obtain the best deal that you can 4. Remember: Shop, compare, negotiate 5. Fair lending is required by law 6. Credit problems? 7. Glossary 1. Obtain Information from Several Lenders Home loans are available from several types of lenders-- thrift institutions , commercial banks, mortgage companies, and credit unions. Different lenders may quote you different prices, so you shou  More...

Terms of Use What are FHA loans? The Federal Housing Administration (FHA) works to make home ownership a possibility for more Americans. The FHA is not a lender but rather an insurer of loans. The FHA issues guidelines to banks and credit unions to follow so that as long as a loan meets those terms, it agrees to insure against loss. FHA loans are attractive for first-time homebuyers who might not have saved enough for a down payment of 5% or more for a conventional loan or whose debt-to-income  More...

Terms of Use: The annual percentage rate (APR) is an interest rate that is different from the rate stated on the loan and is commonly used to compare loan programs from different lenders. The Federal Truth in Lending law requires financial institutions to disclose the APR when they advertise a rate. Typically the APR is found next to the rate in the ad. The APR is designed to measure the true cost of a loan, and was intended to create a level playing field for lenders by preventing lenders  More...

Terms of Use: Closing costs are the fees and taxes associated with purchasing a home. They include searches, clearances, and reports to process the transaction. Depending on where you live and the complexity of your transaction, they can easily add up to thousands of dollars. They're generally around 3% to 6% of the purchase price of the home. Your lender is required to give you a written, good-faith estimate of all your closing costs within three days of your applying for a loan. However, don't  More...

Terms of Use: Your mortgage broker and loan officer are there to help you get the best mortgage possible for your specific needs and to make the process as convenient and hassle-free as possible. A good mortgage broker and loan officer should provide the following services: Assist you in selecting the best loan to meet your personal needs. This single decision can save you thousands of dollars throughout the years. Keep you informed of your loan status throughout the entire process. Keep y  More...

Terms of Use Credit Score A credit score (ranging from 300 to 850) is a measure of your credit worthiness or how likely you are to pay back your debts and do so on time. You want to have a high score. Your credit score is used by lenders, credit card companies, employers, landlords, insurance companies and others in evaluating whether to extend credit to you. The higher your credit score, the lower the assumed risk to lend you money. While no specific definition of “good” is un  More...

Terms of Use The Whys: To save money when market rates are lower than what you are paying. To pay off non-deductible consumer debt using some of the equity built up in your home. To change your present adjustable mortgage to a fixed rate or vice versa. To get cash for home improvements, college education, second home purchases and personal investments. The Whens: If you are refinancing your mortgage for the reasons defined in 2-4 above, then it really comes down to understanding how much you w  More...

Terms of Use: The major reason to consider getting an FHA loan is because an FHA loan has less stringent criteria than those used by banks and credit unions for qualifying you for a conventional mortgage. As such, an FHA loan may provide an ideal choice for first-time home owners or individuals rebuilding their credit. For instance, the FHA allows you to use 31% of your income towards housing costs and 43% towards housing expenses and other long-term debt. With a conventional loan, this qualifyi  More...

Terms of Use: Selecting a real estate agent is an important part of buying a new home, although not required. A good real estate agent can be extremely helpful and should provide the following services: Present the homes that suit your needs as you've defined them. Preview those homes to weed out those that are overpriced, or undesirable in some other way. Help you determine the difference between a good buy and a property which, because of its characteristics (i.e. neighborhood, market app  More...

Terms of Use Your FICO® scores, from Fair Isaac and Company ( FICO ), are the credit scores most lenders use to determine your credit risk. You have three FICO ® scores, one for each of the three credit bureaus – Experian, TransUnion, and Equifax. Each credit score is based on information the credit bureau keeps on file about you. As this information changes, your credit scores tend to change as well. Credit scores consider five main kinds of credit information. Listed from most   More...