If it's possible that prices will continue to fall, why should you buy now?

While price is the major concern for anyone selling a home, cost should be your primary concern as a buyer. That means you have to take into account what your monthly payment will be, considering not only the price of the home but also the interest of your mortgage. Waiting for prices to bottom out while rates are increasing can wind up costing more over the life of the mortgage. Fannie Mae, Freddie Mac, the National Association of Realtors, PMI, and the Mortgage Bankers Association are all projecting interest rates will increase over the next several quarters. It's best that you meet with your mortgage professional to help you determine what an interest rate increase will cost you based on the expected size of your loan. That will help you make a decision.

Low interest rates - now closing costs help for buyers

Fannie Mae is once again offering closing-cost assistance for buyers who close on a home in the mortgage giant's real-estate owned (REO) inventory, but in most states will not bring back cash bonuses it previously paid to buyers' agents.

Buyers who put in initial offers on or after April 11, and close on the sale of a Fannie Mae HomePath property by June 30, will be eligible to receive up to 3.5 percent in closing-cost assistance.

The offer is only good for buyers who intend to occupy the home they are purchasing as their primary residence -- second homes and investor properties are not eligible.

Offers submitted before May 15 have the best chance of qualifying, Fannie Mae said, as offers submitted after that "are particularly questionable for closing" by the June 30 deadline.

Mortgage interest rates and credit scoring.

Credit scoring was developed in the 1960s as a means to determine whether or not consumers were likely to repay their loans. The score ranges from 350 to 850 with a higher score being extremely favorable. Essentially, a high credit score translates into lower interest rates for the borrower.

There are five factors that comprise the credit score. Payment history accounts for 35% of the score; outstanding credit balances have a 30% impact; credit history makes up 15%, type of credit factors at 10%; and inquiries influence the score by 10%. This gives the lender a snapshot of an individual's sense of financial responsibility and ability to pay back loans.

There are many quick tricks to improve the credit score, and I can provide borrowers with more information on this subject. If necessary, I guide them to a reliable resource for credit remediation. If a borrower has to pay a higher interest rate to close a loan, the tarnished credit rating will begin to improve once mortgage payments are made on time and in full. If that is the case, my team and I will be on the watch to alert the borrower when an opportunity arises to refinance and get a lower interest rate.

Mortgage Interest Rates for Fixed Rate Mortgages are low. Call me to find out more...

Financing for your first home

Are you getting ready to buy your first home? It is important to know how much you can afford before you begin looking at properties. Talking with a lender and getting pre-approved for a loan puts you in a stronger negotiating position with sellers.

As a rule, your monthly housing costs should not exceed 28% of your monthly pre-tax income. These costs include the mortgage payment, real estate taxes, and insurance. If you have long-term debts, such as student loans or car payments, your monthly payments, including your housing costs, should be less than 36% of your pre-tax monthly income. Some loans, such as VA and FHA loans, are more flexible with these basic guidelines.

Depending on which type of mortgage you select, you can consider houses in various price ranges. An adjustable-rate mortgage will usually enable you to qualify for a higher loan amount. Your real estate agent can help you make the basic calculations. Remember that buying at the top end of your price range gives you more time to outgrow your home, and can save you money over the long term.

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Help someone avoid foreclosure.

Many people have the impression that most real estate agents only care about themselves and their commissions. I'm here to help you avoid foreclosure if possible. For example, if you are facing a foreclosure sale, you can ask me about the "ask for the note strategy" to delay or stop the foreclosure. I can also refer you to an organization such as NACA.net. NACA.net who does forensic loan audits to determine if the lender violated any RESPA or other requirements. If the lender did so, then you have more leverage to work out a loan modification, a short sale, or some other solution.

Give me a call today. I can help.

Tips for buying a home in 2011 - Why Rent when you can buy?

Here are some good tips to buy a home instead of continuing to rent. Make it your New Year's Resolution.

Resolution #1: I will save up for up-front costs associated with buying a home.
While it is true you can buy a home without the full 20% deposit, home buyers should still make the effort to save for a sizeable down payment. A five percent or ten percent down payment is a step in the right direction. In addition, you will need to account for finances for closing costs. While some sellers will make concessions and pay it for home buyers, not all will, so be prepared for the cost. A good rule of thumb when looking at closing costs is two to four percent of the purchase price.

Resolution #2: I will get my credit in line.
The first step to improving your credit score is to know it. There are several free sites you can use to get your credit score, such as www.AnnualCreditReport.com. The next step will be to pay down/off your credit card debt. Paying down/off revolving debt looks better on your credit report. And be sure that your balance is 30% or less of your credit card limit. High balances, even with regular payments, do not help your final score.

Resolution #3: I will find a qualified agent to represent me.
Buying and selling a home is a huge financial transaction, so it is important to work with a qualified real estate professional who will understand your needs, the real estate industry and the current market. You will want to reach out to your network, interview at least three agents and trust your instincts during selection. You can also visit Homes.com ‘Find a Real Estate Agent’ section to locate a professional in your area.

Resolution #4: I will be an educated home buyer.
Being an educated home buyer is really important for the process to run smoothly and ensure that you enjoy your home search experience. You can begin research on the Internet to learn the various vocabulary terms and each step in purchasing a home. Attending various courses for home buyers and homeowners is also beneficial.

Resolution #5: I will take my time and enjoy the process.
As a recent first time home buyer, I can attest that the home buying process can be stressful, overwhelming and sometimes chaotic. That being stated, you will still need to take the time and enjoy the home search process. Whenever you feel overwhelmed, take a step back and relax. This is your buying experience, and you will ultimately be living in the place you decide.

Closing on your house

If you are selling your house, you may have to jump through a few hoops between the time you and the buyer reach an agreement and the time the money and deed change hands. The structural inspector usually finds a few things that need to be repaired or replaced, and the termite inspection may reveal the presence of unwanted pests. Most buyers will also have a list of items that they want the seller to fix.

The ideal is to have your home as perfect condition as possible in time for the walk-through inspection prior to closing. If you have agreed to complete repairs on your home, it is a good idea to get an early start on the work so there will be plenty of time to correct any "surprises" that may be found. Call several companies to get competitive bids for the work that needs to be done or ask your real estate agent for recommendations.

Presenting the buyers with a clean, well-maintained home will make the process a lot easier for them, especially if they get a case of last-minute jitters.