Finding A Realtor

Like any key relationship, you have to feel comfortable with your partner. Friends need to feel comfortable around their friends. Boyfriends and girlfriends need the same comfort. And the same goes with buyers and their realtors.

Finding a compatible realtor isn’t always the easiest thing to do. Many people go through handfuls of realtors before finding someone who suits their needs perfectly. You should feel a certain sense of confidence in your realtor. Not only should he be educated about what he is showing you, he should be in tune with what you want.

 Referrals are always a good place to start. Maybe a friend, co-worker, or neighbor recently bought a house and had a good experience with the realtor they dealt with. Ask around to see if anyone you know has someone in mind. What’s good for someone else might not necessarily be good for you, but it’s a nice place to start.

If you’re coming up short finding a referral, try searching the Internet. There are tons of directories and search engines that list agents. Pay close attention to the detail on the agent’s website. If someone is boasting about his or her credentials, but fails to show any genuine concern in helping you find the perfect home, you might want to keep looking.

Surprisingly enough, other realtors are also a good source of information. If they’re truly professional, and they know they’re not a good fit for what you’re looking for, they may give you a good lead on another agent. Loan officers, mortgage representatives, and home inspectors are also good sources of information.

Look for someone who has dealt with the area you’re looking in. Question the realtor to see how familiar she is with the area and how confident she is with her answers. If an area looks a little questionable to you, and the agent is raving about what a great location it is, you might want to rethink having the agent as your key realtor.

You can usually tell whether a realtor is more interested in making the sale or finding you your perfect home. Agree to meet with an agent first. If you feel pressured to buy a home with a pool when you know darn well you don’t want the responsibility of a pool, you’re probably with the wrong agent. If the agent is in tune with your likes and dislikes, and shows you homes that showcase your likes, you’re probably on the right track.

Remember that your home buying process is about you. Your perfect realtor should realize this too, and not make the home-buying process revolve around the realtor’s potential commission. Choose wisely and go with your instincts. You’ll not only find the perfect agent, but the perfect home, too!

Knowing Mortgage Basics

Your days as a renter are now numbered. Your credit is good, you have a house picked out and all you need in order to become a homeowner is a way to finance your purchase. And although you’ve heard the word "mortgage" throughout your entire life, you’ve never really given it much thought.

What is a mortgage?

A mortgage is "a legal agreement that uses property as collateral to secure payment of a debt." It works essentially like any other type of secured loan except that the stakes involved if you default are much higher. Miss a couple payments on a car loan, and you’ll likely be looking at a bus schedule. Get behind on a mortgage and you may risk losing your house.

The benefit of owning your own roof makes a mortgage very attractive. Unlike renting, each dime you pay on a mortgage goes toward eventual free-and-clear ownership of a property. And the difference between what you owe on a residence and its actual worth – the equity – can be used as collateral to help finance automobiles, an education or even home improvement projects that will increase the value and livability of your home. In the early years of a mortgage, when the interest percentage of your monthly payment is high compared to the principal. The different ways in which principal and interest can be factored make some loan products more attractive than others.

The process of paying interest and principal back at varied rates throughout the life of a mortgage is called amortization. The type of mortgage that will work best for you depends largely on how you intend to use your home and what your financial plans are for the future. Other variables include how fast your home appreciates in value, what you can afford for a down payment and that all-important number, the interest rate. This last factor is especially important with fixed-rate mortgages.

Holding the same interest rate throughout a 15, 20 or 30-year term, the fixed-rate mortgage is the most common home loan. And if nothing else, there is comfort in the consistency of the payment amount. If you lock in a 6.5 percent interest rate on a 30-year fixed-rate mortgage with a monthly payment of $853 two days after your 35th birthday, you can be assured that when you hit your golden years, that payment will be the same.

Should you wish to increase your monthly payment and pay a fixed-rate mortgage off sooner, you can do so. Any increase in payment and frequency can modify the amortization schedule and shorten the term. You could shave several years off a 30-year mortgage.

There are mortgages that feature lower interest rates but don't offer the permanence of a fixed-rate loan. Adjustable-rate mortgages, or ARMs, have rates and monthly payments that adjust depending on economic trends and contractual terms. Most ARMs have an initial interest rate that is two to three percentage points lower than a fixed-rate mortgage.

The variety of mortgage loan products you can choose from depends largely on your credit. Nothing is worse than being forced into a mortgage loan you can scarcely qualify for. For more information, contact the credit union.