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Follow on Google News |  Which of These 7 Secrets For Saving Thousands Could You Use When Finding and Financing Your Home?This guide is about the questions you always wanted to ask. It’s a helpful guide for buying the right home, at the right price, and getting the right financing. It also discusses other items of importance to buyers.
By: Oasis Realty Dear Home Buyer, Did you read the statement above? Someone said it was written backwards that money was made when real estate is SOLD. “How on earth could you make money when you buy it?” he said. But, long time real estate investors know this is TRUE! You might receive your sales proceeds when you sell your home, but it’s how well you BOUGHT your home that will determine HOW MUCH your proceeds will be. But the story doesn’t end there. Finding the right home, and making a prudent financial investment is more involved than just “buying right.” You also need to FINANCE it right. Even Experienced Homeowners Make Costly Mistakes When Buying And Financing Their Home Hi! This is from the desk of Ellen C. Whomsley. She specializes in helping people buy the right home at the right price with the right financing. This news release was written to give you a number of helpful, straightforward tips to achieve those results. This is abridged. If you want the full report, contact Ellen: Ellen@ Here are seven secrets you should consider when buying your next home. Secret #1: Understand What You NEED In Your Next Home. Do you realize your needs are fairly basic? Secret #2: Understand What You WANT In Your Next Home. Here’s a good suggestion: Take out a piece of paper and draw a vertical line down the middle. In the left column, write down everything you like about your present home. In the right column, write down everything you dislike about your present home. It is recommended that you RANK each feature in terms of its importance to you and your spouse. You’re both going to live in the home, so you better understand what the other wants. Ranking will also show you areas you may need to eliminate because of price constraints. Secret #3: Understand How Much Home You Can Afford. Like it or not, there are two guidelines bankers and mortgage lenders use to determine how much loan you can afford. The first guideline is the Payment To Income Ratio. This guideline compares your total household income to the amount of mortgage payment you’re considering. There is also the Debt To Income Ratio. This compares your total debt to your ability to make current payments with your new home loan added into the equation. Now, here’s the “stickler.” If you spend two or three days to find a loan that saves you $40,000 to $150,000 over its term, your time is WELL SPENT! Don’t you agree? If you want help in finding a mortgage broker, ask me. I don’t do loans, but I know lenders who are competent. Secret #4: Save A Bundle When Financing. The most common type of loan is fixed vs. variable rates, but there are hundreds of loan packages from which to choose. However, you MUST understand the relationship and impact interest rates, term of loan, points, and type of loan can have on your overall financial picture. The answer for how much you put down on your home is different for most people. However, Some People Put Down More Cash On Their Home Than They Need To. They Could Have Received A Better Return On Investment Had They Invested The Money Instead Of Putting It Into Their Home Now, let’s shift gears a little and talk about the impact Interest rate and Term will have on your overall financial picture. How INTEREST RATE and TERM can make or COST you THOUSANDS! Just ONE percentage point on a $150,000 loan can cost you almost $37,000 over the term of the loan! TWO percentage points will cost you over $72,000!! And if you think interest rate has an impact on your overall financial picture, take a look at what modifying the TERM of your loan can do. Here’s an example of a $150,000 loan at 7% interest. But this time, look at the total interest paid when you select a 30-year vs. a 15-year vs. a 10-year amortization: Term Int Rate Monthly Pmt. Int Paid Savings 30 Year 7% $ 998 $209,280 - 15 Year 7% $1,348 $ 92,640 $ 116,640 10 Year 7% $1,742 $ 59,040 $ 150,240 Also, be sure you can pay off your loan ahead of time without penalties. If you have a 30 year loan, you can save almost the same amount of money as if you had a 15 year loan by making two extra payments on the principle during the year. How do You Know How Many Points You Should Pay? Say, for example, you were considering two loans. Both are for $150,000, and both are 30-year amortization. DEAL #1: One loan offers you 7.5% with 0 points for origination… DEAL #2: Another loan offers you 7%, but wants two points to originate the loan. What’s the ONE factor that will determine which loan is better? How LONG You Keep The Loan! Are you starting to see how important it is to understand your home’s financing? How important it is to shop for the best rates, terms, and points? Now, let’s move on to another important secret for buying your home… Secret #5: How You Evaluate Homes Will Save You Thousands of Dollars And Heartaches! Before you buy or refinance your home, INSIST on seeing a “total market overview” of exactly what is going on in the ENTIRE market. Then narrow your analysis to local market information. OK, so you’re now pre-qualified with financing, and you’ve also found a number of homes to preview. The Way You Inspect A Home For Sale Can Save You Enormous Amounts Of Money And Time Buy The Midrange Home In The Best Neighborhood You Can Afford Secret #6: Save Thousands of Dollars Writing Your Offer And Negotiating Your Deal Years ago a real estate expert said, “The party who is less motivated almost always gets the better deal.” The ONE single element that will determine how well you negotiate your offer is… How MOTIVATED Is The Seller And How MOTIVATED Are YOU? Secret #7: Be Financially Prepared – Ahead Of Time! Now, the next thing you want to do is GET PRE-QUALIFIED with a lender. Better yet, try to get PRE-APPROVED. Why? Because the first question any home seller or his agent asks when an offer is presented is: “Is your buyer approved for a loan?” Buying and selling real estate can be tricky business. And selecting the wrong real estate agent can cost you a lot of money, headaches, and wasted time. There’s a FREE specific program designed for buyers like you. It is called: “Preferred Buyer Program” So call 1-714-776-3820 and arrange a convenient time to meet and learn about the Preferred Buyer Program. Remember, this report was shortened to meet certain requirements. To see a full copy of this report, call 1-714-776-3820 and ask for a copy of “Which of These 7 Secrets For Saving Thousands Could You Use When Finding and Buying Your Home?” Or, request it by e-mail: mailto:Ellen@ Sincerely yours, Ellen C. Whomsley, Broker-Realtor Oasis Realty www.OasisRealtyNow.com mailto:Ellen@ # # # If you want to buy or sell real estate and are scared because you want to do it right, contact me. My job is to help you find the right home or property for you and to help you find the right buyers for your home or property. If you want to be a person instead of a number, contact me at 1-714-776-3820.. End
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