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In addition to saving for a down payment, you’ll need to budget for the money required to close your mortgage. Closing costs generally run between 2% and 5% of your loan amount. You can shop around and compare prices for certain closing expenses, such as homeowners insurance, home inspections and title searches. You can also defray costs by asking the seller to pay for a portion of your closing costs when you make an offer. Calculate your expected closing costs to help you set your budget.

There are many first-time home buyer programs available and government loan programs that enable buyers to get into their new home with 3.5% or less down.   Be sure to talk a mortgage broker or take a First Time Homebuyer class to educate yourself.  You may be able to get into a home and start building equity sooner than you think.

Don’t obsess with trying to time the market and figure out when is the best time to buy. Trying to anticipate the housing market is impossible. The best time to buy is when you find your perfect house and you can afford it.  Real estate is cyclical, it goes up and it goes down and it goes back up again. So, if you try to wait for the perfect time, you’re probably going to miss out.

There is a big difference between a buyer being pre-qualified and a buyer who has a pre-approved mortgage. Anybody can get pre-qualified for a loan. Getting pre-approved means a lender has looked at all of your financial information and they’ve let you know how much you can afford and how much they will lend you. Being pre-approved will save you a lot of time and energy so you are not running around looking at houses you can't afford. It also gives you the opportunity to shop around for the best deal and the best interest rates. Be sure to do your research: Learn about junk fees, processing fees or points and make sure there aren’t any hidden costs in the loan.

If you have little saved for a down payment or your credit isn’t stellar, you might have a hard time qualifying for a conventional loan.  You might assume you have no financing options and delay your home search. Consider looking into one of the three  government-insured loan programs  backed by the Federal Housing Administration (FHA loans), U.S. Department of Veterans Affairs (VA loans) and U.S Department of Agriculture (USDA loans).  Here’s a brief overview of each: FHA loans  require just 3.5% down with a minimum 580 credit score. FHA loans can fill the gap for borrowers who don’t have top-notch credit or little money saved up. The major drawback to these loans, though, is mandatory mortgage insurance, paid both annually and upfront at closing. VA loans  are backed by the VA for eligible active-duty and veteran military service members and their spouses. These loans don’t require a down payment, but some borrowers may pay a funding fee. VA loans are offered through private

It’s not wise to make any huge purchases or move your money around 3-6 months before buying a new home. You don’t want to take chances with your credit profile. Lenders need to see that you’re reliable and they want a thorough paper trail so that they can get you the best loan possible. If you open new credit cards, accumulate too much debt or buy too many big-ticket items, you’re going to have a hard time getting a loan.

Home buyers with little to no down payment savings looking to grow their down payment, can do so through contributions from friends  and family through HomeFundIt, the down payment crowdfunding platform.  What a great resource for engaged couples to send to their wedding list in lieu of a wedding registry! In addition to crowdfunding, buyers can increase your down payment  savings with UpIt, the only cash back program approved for a mortgage down payment. When you (or friends and family) shop online with UpIt retailers, a portion of your purchases goes to your down payment savings.  Visit  homefundit.com  for more information.

As the temperature in many areas of the country starts to cool down, you might think that the housing market will do the same. This couldn’t be further from the truth! Here are 4 reasons you should consider buying your dream home this winter instead of waiting for spring! 1. Prices Will Continue to Rise CoreLogic’s   latest   Home Price Index   reports that home prices have appreciated by 6.3% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.2% over the next year. The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense. 2. Mortgage Interest Rates are Projected to Increase Your monthly housing cost is as much related to the price you pay for your home as it is to the mortgage interest rate you secure. Freddie Mac’s Primary Mortgage Market   Survey   shows that interest rates for a 30-year mortgage are currently at 4.08%. The   Mortgage Bankers Associa

New rules have taken effect that will change your home buying experience! The Know Before You Owe mortgage initiative is designed to empower consumers with the information they need to make informed mortgage choices. It includes the implementation of the TILA-RESPA Integrated Disclosure rule, which is often referred to as “TRID.”  Mortgages are complex and confusing. This new rule primarily does two things: It simplifies and consolidates some of the required loan disclosures, and It changes the timing of some activities in the mortgage process. If you are a buyer and would like to better understand the complicated process of applying for a mortgage, click here for a helpful step-by-step guide that includes information on the mortgage process and the new  regulatory changes.  This booklet is a toolkit that can help you make better choices along your path to owning a home.

Qualifying for a FHA loan just got easier! Most lenders have required a 640 minimum FICO score for FHA purchases and refinance transactions. Effective TODAY, the minimum credit score for FHA Fixed Rate loans has been lowered to 620. Another good reason for buyers to get off the fence!!! Click here for more real estate news and advice. For more mortgage and finance information, visit my website's mortgage center .

Don’t forget the cost of FHA mortgage insurance is going up. But there is a window of opportunity to get an FHA loan before the this happens. As long as the the laon in obtained before April 5, you can get an FHA loan with 1.75% upfront mortgage insurance (versus 2.25% AFTER April 5). Why This Is Happening: · FHA’s capital reserve requirement mandated by Congress has fallen below the minimum requirement. · FHA makes up 1/3 of all financing in today’s market What Will Change: · Increase in the up front MIP Fee to 2.25% from 1.75% · FHA is also asking Congress to increase its monthly premium which is one of the major advantages compared to a Conventional Loan’s PMI rate. (This has not been finalized yet). · Seller concessions will be lowered to 3% from 6% - currently viewed as a reason to inflate appraisals. · Minimum Credit Score of 580 – lower scores require 10% down · Most likely will not increase the amount the buyer needs to bring to the table, but by increasing the PMI it will incr

A number of factors affect your credit score; improving the score requires you to take care of those factors such that you can manage your credit better. Follow these simple steps to improve your score: Improve your payment history: Avoid making late payments on your bills. Clear up all your past-due bills as soon as possible. Request your creditor for an alternative plan with low monthly payments. Negotiate with your creditors to remove charge-offs from your report and re-open those accounts. Request your creditors to erase late payment entries after you re-start paying in time. Reduce your outstanding debts: Pay off high interest debts first. Keep your balances low and try to keep your revolving debt to 50% of your available credit. Don't close old and unused accounts rapidly in order to lower your available credit. It will raise your debt-to-credit limit which has a negative impact on your score. Try to close accounts gradually over several months. Verify if the accounts closed

Back in the fall when the federal tax credit for homebuyers was extended and expanded, the April 30th deadline seemed so far away. If you look at your calendar today, you willl notice that April 30th, the last date for a signed purchase and sales agreement to be in place, is only 82 days away! I will admit that Spring has started early this year with buyers taking advantage of the homebuyer tax credits. But, there a lot of buyers that are still procrastinating. In the real estate world 82 days is not a long time. Don't miss out on this excetional opportunity to buy a home! With low prices, low rates and up to $8,000.00 in tax credits (for first time homebuyers and the up to $6,500.00 for previous homeowners), this is an ideal time to buy a home! Help spread the word! Tell everyone you know about this excetional opportunity!

Here is important informaton you need to know… and you need to tell your family and friends right away! Few people realize that each time their credit is checked, the information provided to the credit bureaus ( Equifax , TransUnion , Innovis or Experian ) immediately becomes a commodity that is sold not only to other lenders but also to companies that sell and resell the same names and personal information. That’s right - the credit bureaus have found a way to increase their revenues at our expense, without our permission! These "inquiry leads" include name, address, phone numbers (including unlisted), credit score, current debt and debt history, property information, age, gender and estimated income. They are marketing personal, confidential information to competing creditors and making millions. Our privacy is being sold, not just once, but over and over again. Lenders that have purchased these leads at a premium will then do everything they can to recoup their investme

So, you’ve decided to purchase a home and take advantage of the Extended Home Buyer Tax Credit. Here is what you will have to do to get your benefit: Close on your home purchase between November 7, 2009 and April 30, 2010, or have a binding written contract by April 30, 2010 and close by July 1, 2010. Decide whether you are going to: apply the credit to your 2009 tax return, filed on or before April 15, 2010; file an amended 2009 return; or, apply the credit on your 2010 return, filed on or before April 15, 2011. 3. Attach documentation of purchase to your return. Documentation of Purchase Details concerning the precise documents required to confirm your purchase have not yet been released. When this information becomes available, I will include instructions and links to the appropriate forms. When to Apply the Credit Buyers purchasing homes on or before December 31, 2009 may claim the credit on their 2009 tax returns. Buyers purchasing in 2010 will have the option to: Claim th

Who Qualifies for the Extended Credit? First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010. Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight. To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase. Which Properties Are Eligible? The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops. How Much Is Available? The maximum allowable credit for first-time home buyers is $8,000. The maximum allowable credit for current homeowners is $6,500. How is a Buyer's Credit Amount Determined? Each home buyer’s tax credit is determined by tow additional factors: The price of the home The buyer's income Price Under the Extended Home Buyer Tax

Legislation has been passed to extend the $8,000 home buyer tax credit to May 1, 2010, for first-time buyers and add a $6,500 tax credit for repeat buyers if they've lived in their home for five of the past eight years. Home prices are capped at $800,000. The legislation in both houses was included in a bill to extend unemployment benefits and is expected to be signed by President Obama shortly. Under the bill, income limits are expanded to $125,000 for individuals and $225,000 for joint filers. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.Households who have binding contracts in place by April 30 will be allowed an additional 60 days to complete their transaction. The deadline for members of the military serving out the U.S. for at least 90 days between Jan. 1, 2009, and May 1, 2010, has been extended one year. Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill

Are you ready to own a home but are not sure you will qualify due to lack of a down payment? Rural Development may be able to help you! USDA Rural Development has offers 100% financing opportunities to rural individuals and families with: No down payment required No expensive monthly mortgage insurance (which means you may qualify for a larger loan) Flexible credit and qualifying guidelines No maximum purchase price limit Closing costs can come from any source including gifts or the seller Repairs and improvements can be included in the loan Competitive fixed 30-year rates. So, if you have been thinking about taking advantage of the $8000 Home Buyer Tax Credit, but do not have the money for a down payment and closing costs, think again! The Rural Development guaranteed loan program has assisted thousands of home buyers customers just like you. It is definitely worth looking into! Click here for more information and check out my website for more home buying tips!

Obtaining a home inspection is one of the most important steps in purchasing a home. A qualified inspector can point out potential costly problems with the home you are considering buying, and a good inspector will give maintenance advice and ultimately give you peace of mind about your home investment. All home buyers -- whether they are buying an older home or building a new one -- should have the home inspected by a professional after making an offer and before closing. There are a few things you need to know before hiring a home inspector. First, the home inspection industry is becoming more professional and regulated. There are professional organizations with codes of ethics, like the National Association of Home Inspectors and the American Society of Home Inspectors, but membership is voluntary. The average home inspection costs $300, which is paid on the day the inspector examines your home. Lower or higher fees do not necessarily reflect the expertise of the inspector. Finding

A year after the financial collapse of 2008, the housing market is very different than it was before the foreclosure crisis. Here are seven bits of wisdom from economists and financial planners for anyone contemplating a home purchase today: Old-fashioned basics are more important than ever. The safest way to purchase a home is to put down 20 percent on a fixed-rate, 30-year (or less) mortgage. Don’t become overconfident about income growth. Even though buyers in their 20s and 30s will likely see their incomes grow more quickly than previous generations, it is important to act sensibly when borrowing. Anyone contemplating adding children to the family should calculate whether they could live on one income because having both halves of a couple work may turn out to be impractical. Include a maintenance budget. Even new homes need upkeep and repairs. Buyers who can't afford their dream home now should opt for a starter home where they can save money each month for what they really wa