A Tax Credit - Cash For a Home (As I call it)
The real estate market has enjoyed another healthy month in real estate. Since it was introduced early this year, each month we have seen a remarkable steady climb in all the three jurisdictions. A tax credit of up to $8,000 was available for qualified first-time homebuyers purchasing a principal residence beginning January 1, 2009 and before December 1, 2009, and this has really boasted the market.
Most people took advantage of this program and they got their dream homes. Paying less in mortgage than ever thought since 2001, an average of $550.00 to $1800.00 for a one bedroom to four bedrooms condos, town-homes, and single family – homes. This is regardless of whether one is buying a resale or brand new. These prices have never been heard of since years 2000-2001. So why delay, we are in a market that is much more affordable to own....
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Common Finance Options
Private Lenders // Banks // Federal Government
Private Lenders
Private lenders are individuals and small businesses who help people attain financing by "shopping" for the best mortgage option for you. They shop various banks to see which one has the best rate, terms, and conditions.
Banks
By going directly to a bank and cutting off the middle-man, private lenders, you may be able to get an excellent rate. Most people who benefit by borrowing directly are those who've had their account for some time and have a long history, in good standing, with their financial institution
Its also true that Federal Credit Unions offer greater discounts on mortgage loans. Therefore, it does pay to shop around for the best rate.
Federal Government
The Feds also cater to your mortgage needs. Even though they are now separate entities from the federal government, Ginnie Mae and Fannie Mae where setup to serve low-income and first-time buyers. The differences in what the offer is in How the mortgage is secured.
Discover! Fannie Mae
Discover! Ginnie Mae
Popular Mortgage Risks
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EXCESSIVE FEES
Prospective home buyers with poor credit ratings are considered high-risk customers. Unfortunately, they are the most at risk for unscrupulous lending practices. There are mortgage companies that target these clients specifically because they are easy marks for excessive fees. One way to raise the cost of a mortgage loan to the consumer is by charging high points on the loan. Since one point equals 1% of the loan amount, the fair amount of points to on a loan would be between 1% to 3%, varying on the size and term of the loan.
- HIDDEN FEES "All fees are to be outlined on both the Good Faith Estimate, which states interest rate, amount of mortgage, and loan terms, as well as all fees, and the Truth in Lending form, which breaks down the total financial evaluation. There is a time frame within which you must be presented both forms by your lender, which varies from state to state.
Many fees are technically hidden from the borrower by the way that they are presented. As you receive the Truth in Lending forms, it is essential for the borrower to review these documents and make sure all fees, points, percentage rates and terms are the way you agreed upon with the lender. When uncertain about any discrepancies, consult your agent. Their number 1 priority is to look out for your best interest.
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