Tuesday, December 12, 2006

Buying Your First Home

Getting pre-approved for a mortgage loan can make the entire home buying process go smoother. Even with the wealth of home buying information available on the Internet, it's a good idea to have an agent. Many women who get invited to baby showers don’t have children of their own, leaving them with no idea what to buy for the soon-to-be mom.

If your on a tight budget, you don’t have to splurge to get a designer baby bag. Buying points can lower the interest rate of a mortgage loan, but that doesn't automatically make it a good option for every situation. Some home buyers pay points to their lender at closing in order to lower their interest rate over the life of a loan.

If the lender requires that you take out a policy in both their name and yours, then you have no decision to make. Your mortgage lender will require you to take out a title insurance policy in their name. The sellers will be more comfortable with you since a lender has said, in essence, "Yes, this person is worthy of a home loan.

They can likely refer you to a lender who can help pre-qualify you for a loan. Here are some tips to help you balance emotion with logic for a safer home buying experience. Here are some more tips to help you get the most out of your house hunting experience.
As part of the home buying process, you need to take a good, hard look at your credit situation. Home buying brings out all kinds of emotions. Buying a home can stir up a lot of different emotions, and that’s perfectly normal.

How you proceed in light of the seller’s response is up to you and your agent. When you review the inspector’s list with your agent, you’ll have to decide which items (if any) you want the sellers to repair. On the other hand, if you plan to stay in the home (and keep the mortgage) for a long time, paying points could very well save you money.

Once you’ve obtained an approximate monthly payment for various mortgage sizes, you can more accurately figure the price ranges into your budget. Next, run the home price through a mortgage calculator at current interest rates and at a 30-year fixes mortgage. Let's run the numbers for a $200,000 loan for 30 years at a fixed rate.

Your credit score is based on the information in your credit reports, which come from the three aforementioned agencies.

Monday, October 09, 2006

Purchasing a commercial investment property has become very popular nowadays. Rental income can be a nice supplement to your salary and as the value of the property increases, you may at some point sell it for more. The rental returns may help you save some money to buy your own place. However, with all these potential benefits, your success is not guaranteed. To increase the chances for a successful investment, there are a few steps that you should follow when buying the place.
Where To Buy?
With commercial investment property there is no point in taking an emotional decision when deciding on where to buy the place. As you buy it for profit, the most important rule is to buy in a growth area. Experts regard suburbs as promising areas for a commercial investment property. The best strategy is to inspect as many areas as you can to see what their offer is. The proximity of public facilities, shops and restaurants is also important.
What To Buy?
While houses may be nicer than units, they are also more expensive and more difficult to maintain. If you purchase an appartment, the owners share their expenses when something goes wrong. A room with a view is a great extra, but you shouldn't spend too much just to have a beautiful view. If your commercial investment property is too expensive, you will also need a high rent to recoup your expenses and you may have difficulty in finding tenants. If the property is currently rented, it gives you a chance to gather some information on the rental history of the place. This way you can estimate your revenue more accurately.
Getting A Loan
Some lenders may have higher interest rates and require a higher down-payment for a commercial investment property loan than for a home loan. This is because they feel the risk is higher. However, if you shop around a bit more, you may get lucky and be able to get a home loan for your commercial investment property.
Renting The Place
When you estimate your rental revenue, bare in mind that there might be some short periods when you won't have any tenants (e.g. during repairs or when tenants move out and you have to find new ones). You also have to figure out how long you want to keep your commercial investment property. In time, the rental income may exceed the mortgage repayments and you will become positively-geared.
If you choose to manage the property yourself, you can save the property management fee. However, it can be a very time-consuming and stressful activity, especially if you have tenants complaining about every little thing. Contracting a property manager may get you rid of all this hassle, but it will also cost you some money.