Going for your Dream 

There is a lot involved before you can fit that key in the door.
Why own? 

• Save on income taxes , deduct mortgage interest and property taxes. This comprises nearly all of your monthly payment for over had the life of the loan. Your investment will increase in value through the period of your ownership.
• The security of ownership
• Painting and redecorating
• Home styles for lifestyles. The home you choose should fit the life you like to lead. Do you like to putter in the yard? Then you want a home with a yard.  Do you yearn to travel or require a hassle free lifestyle? Then a condo or townhouse might be in order for you. 

Checking your cash stash

Ernest money is a deposit required as proof that your offer is serious. Earnest money can be returned if the offer is not accepted. 
Down payments can be negotiable traditionally 10-20 percent however now there are loans that require no down payment. Closing costs generally range from 3-4% annually for mortgage lender charges and other expenses. 

The costs may be 
homeowner associate dues 
property taxes 
city and county assessments 
location and proximity to sporting compels , businesses, schools, airports. Or rail lines or the water. 

Most favorable home financing program

Talk to Mary Ann and be prepared to discuss you financial situation candidly. This often includes both present circumstances and past circumstances such as divorces, bankruptcy defaults , sickness and business failures. 

Disclosures

The lender is require to give you an estimate of the closing costs. These can be negotiated. 
Lenders are  required to disclose the A.P.R. (Annual Percentage Rate), of given a loan. You should be given a calculated A.P.R. which gives you a measure of the cost of credit expressed as a yearly rate.  It includes the amount being financed, rate, timing, and prepayment charges. It is generally higher than the actual rate of interest for the loan. APR is helpful because it gives a measurement of the actual cost of the loan. 

Variety of programs that fit your situation.

There are 40,000 different loan programs. That is why a mortgage broker is so important for providing a loan appropriate to your needs.

Generally two types of loans:

Fixed rate Mortgage
Interest rate stays the same for the term of the mortgage.
Advantage: your mortgage payment is stable and a budget expanse each month.
Disadvantage: interest rates tend to be higher than other loans.

Adjustable Rate mortgages
Your interest rate start out lower than with a fixed rate but your rate and payment can change either up or down as often as once or twice per year based on the prime rate.
Advantage is that you are able to afford a more expensive him because your initial interest rate is lower
Disadvantage: the possibility of an adjustment upwards can make the amount of your loan payment unpredictable

FHA insured Mortgages
Government insures lender against loss in case of buyer defaults. Can get into a home with as little as 3% down
It is either available with fixed and adjustable rates.
It is assumable by the next qualified buyer of your house

Conventional Loans
Loans that are not government insured. Insured mortgagers may be more attractive than conventional mortgages in some ways such as lower down payment requirements. But they may be more restrictive in other ways , for example . They may be available only for certain kinds of homes or for properties whose value is below a specified price 

Assumable or non-assumable
The loan actually goes with the home and is transferred to the next qualified buyer.
This is a great selling point. And makes the home more attractive 

Preapproval

You may even want to get pre-approved for a loan. For preapproval, you'll need to complete a loan application, have a credit and employment checked. With an apprisal and title report on the property you want to buy- your ready to go

Ratios

When looking at your projected mortgage payment and existing debt, some lenders might use ratios such as "28" and "36" to determine whether you qualify for the loan.  These are commonly used ratios. In this formula the 28 refers to the percentage of your gross income (before taxes) that may be spent on housing expenses, including principal and interest on the mortgage, real estate taxes and insurance. The 36 refers to the income that may be spent for payments on all your debts ( including the mortgage). The monthly payments on your outstanding debts, when added to the monthly housing expenses may not exceed 36 percent of your gross income.

Pre-qualified 

Get pre qualified for a loan so you know how much house you can afford. You'll probably have to run a credit check as well as disclose where you are getting you down payment. With a pre- qualification  letter you are armed to negociate in a stronger position. You may not want to disclose the maximum amount your qualified for but you may have Mary Ann tailor the letter to the offer you are making.

Shopping For Your Home 

Make a list of your priorities for the home and neighborhood 
Keep in mind the length of time you'll be living in the home 
will you need more room later or less as the kids leave 
When your shopping, take notes and picturers of the properties. 
Rate each home in relations to the check list below 

Home buying checklist 

Mary Ann Represents You

You need to realize that most real estate salespeople or brokers are working for the seller, not YOU the buyer. Mary Ann, your mortgage broker works for you as your representitive to get you the most favorable terms in getting your home. 

Considerations in making an offer

1. The asking prince in line with the area 
2. Is the homes condition satisfactory
3. How long has the home been on the market. If along time, the seller may be more willing to negociate.
The mortgage payment required
how much do you really want the house. The more you want it the closer your going  to be to the selling price.
Price and terms must work Roget either you give the price or you get the terms, rarely do you get both terms an price. The longer the term and the larger the down payment, the smaller your monthly payment will be.  I some cases the amount of the down payment will influence the interest rate you pay. ( the larger the down payment, the lower the interest rate.
ve willing to negociate and to give a little to get what you want.
 The happy ending

Escrow 

An escrow company is entrusted to safeguard funds being held in trust .  Escrow ensures that all the necessary instruction in the real estate agreement are executed. Escrow primary responsibility is tho protect the consumers inters it is impartial during the escrow period.
Licenced escrow companies are independent business licensed by California department of corporations . They are stringently regulated and subject to stringent requirements Licensed escrow companies usually put a fidelity bond of several million dollars or more. Which guarantees that in the event of theft of trust accounts the consumers funds are protected
Controlled escrows are non licenced and can be owned by real estate brokers . Mortgage bookers , banks and title companies. They are regulated by a variety of agencies