Avoid The Traps Of Finance
By Suzie Shannon
Most consumers are told where to get their mortgage because few people personally
know and trust a mortgage or loan officer or correspondent (the same thing).
It used to be agents would take their buyers out to find the house they wanted,
then to their favorite mortgage company. Now things are so fast and better
organized. It is common practice to have the purchasers prequalified and preapproved
before searching for their new home. Most agents don't know much about finance,
they leave it to the mortage company to explain it.
Probably the most important thing is comparing. I don't understand this, unless
it is young people who just don't know. Most people compare prices of other
thing; cars, gas, food. It's not only important to check interest rates but
also APR or annual percentage rate. This takes all of the mortgage company
charges and breaks it down into a rate that many times is published by several
in the newspaper. You can see 5.49% v 6.11%. It sounds like a little but it
means a lot!
Different types of financing are available. This is something your agent should
be well aware of as well as the mortgage company. I remember a time I was working
with a young couple. I knew the best loan for them was a combination of FHA
and a state subsidized loan. This gave them the lowest down payment and interest
rate. The people at this very well known world wide mortgage company said "you
can't do that" to which I REPLIED, here is the number. I was surprised.
The couple did get the house with exactly that financing. Please rate and tell
friends.
More to come later: http://www.freewebs.com/realestatenews.
Suzie is a licensed real estate broker and certified residential appraiser
with twenty years of experience with hopes of changing the industry for the
better one step and one person at a time. She has other professionals in the
field who are contributing their expertise as well. http://www.freewebs.com/realestatenews
