When shopping for rates, make sure you’re comparing "apples to apples". For instance, don’t price a 30 year fixed rate mortgage at one place and a 5/1 adjustable rate mortgage somewhere else. Also remember that "points" are also referred to as "origination fees" or "discount fees". This is important because some lenders will quote rates with no points, but do have origination or discount fees.

As most homebuyers are probably aware, credit is very important in a lender’s determination of loan approval. We do have lenders that deal with past credit problems; however, any "past due" or "collection" accounts will need to be brought up-to-date. If possible, it is in your best interest to have all accounts current at the time of loan application. For borrowers who have no credit-meaning no accounts on your credit report-you must be able to evidence timely "alternative credit". These items consist of rent, cable, telephone, and electric. Borrowers with slow credit or no credit cannot qualify for all loan programs. Once your credit situation is discussed and reviewed, we will determine which program(s) is available.

Rates are available at 1/8% increments with or without points. Points buy down your interest rate. Therefore, rates are better the more points you pay. One point is 1% of your loan amount, so not everybody is able to buy points (in addition to down payment and closing costs) Generally, on a 30 year fixed rate mortgage, one point will save you at least .25% of interest. Your 1 point investment will be recouped over about 5 years. If you plan on living in this property for more than 5 years, it would be worthwhile to pay this one point. (these numbers are for example purposes only)

In a housing market like we have today, it is in all homebuyers’ best interest to get pre-approved before you put an offer on a property. This pre-approval makes your offer look more appealing to a seller when they can see that your credit package has already been approved by a lender. BEING PRE-APPROVED GIVES YOU MORE BUYING POWER.

Did you know that sellers are allowed to pay for your closing costs and prepaids? On a 5% down program, sellers are allowed to pay up to 3% of the sales price toward closing costs, prepaids and points. This helps you with cash needed at closing. It is important to remember that if you want a seller to pay closing costs, you must detail this in your offer to purchase the property.

When looking at properties, it is advantageous to have a realtor that can help you with finding what you want. When contacting realtors, ask about buyer’s agents vs. seller’s agents. A buyer’s agent represents YOU, the buyer, only. You may or may not have to pay a fee for this service. A seller’s agent represents only the seller.

In a market where the 30 year fixed rates are on the rise, you may want to consider getting an adjustable rate mortgage. See 1 year ARM, 3/1 ARM, 5/1 ARM, 7/1 ARM, 10/1 ARM. These programs allow a lower initial rate for a period of time.

Availability of Declaration of Homestead at closing. The Homestead Act was created to allow a homeowner to shield up to $500,000 of the homeowner’s principal residence from claims by creditors, thereby discouraging or preventing attempts by creditors to seize and force a sale of the home to satisfy a debt. The Homestead Act was designed to protect up to $500,000 of a homeowner’s equity in the homeowner’s house, above and beyond the outstanding balance of any preexisting mortgages or liens. This means that any claimants or creditors who wish to seize an individual’s principal residence will be limited to the equity in excess of $500,000, if any.

Our closing attorney will make a Declaration of Homestead available to you at the closing. There is no cost for the preparation of this document; however, there is a fee of $35.00 to the Registry of Deeds for recording.