Tenth Degree Real Estate - Planning Your search

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Planning your search for you new home and how Much House?
Begin planning your home search by first finding out the total amount that your mortgage banker will loan your family. This does not mean you have to borrow the highest amount, but it wil Submit your application today or call today to get qualified. l give your family the knowledge to begin your home search with a price. A price not to go over as you find the price for your home. If your family is paying cash. You will not be required to go to a Mortgage Banker, but you will be required to show proof of your funds in an account with the amount of the sales price in that account. You will be required to have a pre-approval letter from a mortgage company for the amount of the sales price or verification of funds if paying cash. Once you have sent the mortgage banker the information for him to verify for your mortgage loan, plus the amount you will use for your down payment you will then be able to focus on your search at the right price. When you meet with your mortgage loan officer, make sure you get in writing the amounts you will borrow and the rate and years of your loan, have the mortgage company representative sign it. This allows you to keep this signed copy prior to settlement, and you can compare the numbers at settlement with your copy to make sure the rates given to you in the beginning were not raised to increase your costs. That will eliminate any surprises at settlement if the figures are changed. Just show your signed mortgage rate form and make sure it matches up.

P.I.T.I is another term for monthly house payment. Many TV mortgage advertisements sometimes get you to call in because they show a low payment which equals only the principal (P.) and interest (I.), so you call in fill out the forms and then you find out that your total house payment includes two other important costs that raise your payment significantly, taxes (T.) and insurance (I.), we call that another surprise. Remember it is P.I.T.I. Depending on where you buy, some neighborhoods will have monthly housing costs may also include homeowners association dues and condominium fees. Some of your loans may also have an additional fee called mortgage insurance, this is not a bad fee or a surprise, it is a fee that is charged for some loans, government and state that will allow the home buyer to put less down but they will charge a monthly fee over a certain period of time. These programs that offer this allow some renters to become homeowners sooner, they may not have enough down payment but can afford the higher monthly payment which they can afford. This allows some families to begin building equity in ownership and also allow a deduction on your income tax for owning a home instead of renting.