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 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: A mortgage is a loan that is used to buy a home. In return for the loan, you pay interest on the amount loaned. The lender also has first rights on your house in case you neglect to pay back the loan. A mortgage has three components: Amount (how many dollars you need to borrow) Interest Rate (the percentage rate you pay on the loan) Term (how long it will take to pay off the loan, generally 15 or 30 years) All of these components impact how much your mortgage payment will be  More...

Terms of Use Credit reports contain a wealth of information about your credit history. Consumers now can get a free copy of their credit report. It's important to review your credit report at least annually to ensure it is accurate and that you have not become a victim of identity fraud. A study by U.S. Public Interest Research Group found that one in four credit reports contains errors serious enough to cause consumers to be denied credit, a loan, an apartment or or even a job. Some of   More...

Terms of Use There are two primary types of mortgages: fixed and adjustable. Fixed-Rate Mortgage This is the plain-vanilla loan that most people think of when considering a mortgage. The fixed rate mortgage is an extremely stable choice. With this type of mortgage you pay a certain interest rate over the life of the mortgage. You are protected from rising interest rates, and it makes budgeting for the future very easy. With a fixed-rate mortgage, your monthly payment will remain the sam  More...

Terms of Use Buying a home doesn't have to be an overwhelming experience. Below are some general guidelines to consider when finding a home that's right for you: Do your homework first . Evaluate your tastes, lifestyle, the school district, and preferred commuting distance. Then do a lot of research about the neighborhoods you are considering. Read local papers. Walk and drive around. Determine how much you can afford to spend on your home. As a general rule of thumb, your mortgage  More...

Terms of Use Buying a home is a big decision! By considering the items below, you can help ensure that you make the best decision possible: Determine what you need from your home From its location and schools to the number of bedrooms and square footage, create a prioritized checklist of what is important to you. This checklist should be shared with your real estate agent and used to evaluate homes when viewing them. Your focus here is to make sure that the home is right for you. The eva  More...

Terms of Use: Pre-qualification is an informal way to see how much you may be able to borrow. You can be "pre-qualified" over the phone with no paperwork by telling a lender your income, your long-term debts, and how large a down payment you can afford. Without any obligation, this helps you arrive at a ballpark figure of the amount you may have available to spend on a house. Pre-approval is a lender's actual commitment to lend to you and carries much more weight with sellers than being pre-qual  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: The primary factor is your debt-to-income ratio, which is a comparison of your gross (pre-tax) income to housing and non-housing expenses. Non-housing expenses include such long-term debts as car or student loan payments, alimony, or child support. Many lenders believe you can afford a house if its price is under 2½ times your household's annual gross income. Another rule of thumb is that monthly mortgage payments should be no more than 29% of gross income, while the mortgage p  More...