The Biggest Thing We Buy

Hey guys!  Look at me – posting on my blog and everything.  Yeah, I’m awesome like that.  Anyway, today’s post is all about today’s Fox 9 Morning Buzz segment which is all about this:

Home Loans – How To Get The Biggest Bang For Your Buck.  Frugal tips for folks looking for a new mortgage or refinancing their current loan.

And today’s post/segment would not have been possible without the AWESOMENESS of Sara Wolsfeld at Edina Realty Mortgage in North Oaks, MN.  If you need a great loan officer, you can’t go wrong with this uber-talented woman.  She’s got 17 years of experience, people.

Tips For You To Know And Share:

1.  Get a second or third opinion.  Speak with more than one lender and comparison shop your home loan.  Keep in mind, your personal bank, or the bank carrying your current mortgage, may not give you your best deal.  It pays to shop around.

2.  When you comparison shop, to truly compare apples to apples, get all your lender quotes on the same day.  Interest rates change daily!  What a lender quotes you on Friday will change by Monday.  Also, be sure to give each lender the same loan parameters.

3.  Once you’ve narrowed down your choices, meet with your lender(s) in person.  Have them explain to you exactly what your closing fees will be, and what your finance charges are.  These can vary a great deal from lender to lender, and lenders are required to disclose all charges to you.

4.  Know your score.  For a lender to give you an accurate quote, they will have to pull your credit report and determine your credit score.  If you’re meeting with more than one lender, don’t worry!  You have 30 days to shop rates – and have your credit pulled multiple times – before it affects your credit score negatively.

5.  Ask about government loan programs.  Although they lost popularity in the early 2000’s, FHA and VA loans are excellent loan programs, and your lender should offer them.  FHA is great for first time buyers, offering the lowest down payment at 3.5% (conventional, or non-government loans, require a 10% DP).  And VA loans, for qualified veterans and their dependents, offer 0% down payment programs.  Plus, your credit doesn’t have to be perfect for either.

6.  There’s still time to earn up to $8000.  The tax rebate for first time buyers is still in effect.  You must have a signed purchase agreement on your home by April 30^th, and close by June 30^th.  To qualify as a first time buyer, you can not have owned a home in the last 3 years.  The rebate – up to $8000 – is given like a tax refund with your income taxes.

7.  Once you have your loan, start paying it down!  The more advanced payments toward the principal balance (the amount you borrowed) you make; the less you’ll pay in interest over the life of your loan.  Just by making one extra payment a year on the principal amount can save you big.

So.  What loan/home buying advice to you have to share with the group?  Please leave your comments, and you’ll be entered in our prize drawing on March 1st.