K A R L A C O H N & Associates Realty, Inc.

Tips For Buyers

The best way to make sure that you choose the right home is to properly prepare yourself. The purchase of a home is a tremendous investment, both monetarily and emotionally. Here are a few ideas to help the transaction progress smoothly and result in you being a happy homeowner.  The process is all very exciting, but being prepared to look in the right place within the right price range is key.

• The RIGHT Realtor for YOU.  The right agent will be someone whose experience and personality makes you feel comfortable. You should try to find an agent that is familiar and knowledgeable about the area you plan to move into.
• Pre-Qualify and get Pre-Approval.  A trusted lender can "pre-qualify" you to let you know about how much you can afford to buy. That's the first step. Learn about your financing options, get prepared to decide on which is best for you. Then, if you are close to wanting to make an offer, do get pre-approved. This will make you very appealing to the seller and might just make your deal work! We can give you a list of lenders we have worked with successfully.
• Get Educated    In order to make an educated decision you need to know what's out there and how much it costs. You can browse all the active listings from my website. Once you have found some homes you like save those searches and sign up for "Property Watch" so that new listings will be emailed to you. You'll have an idea when you find the perfect home or property.  And, remember, if you want us to do all the searching on the MLS we are happy to do that. Our website offers addresses so ou can even drive by if you like. We trust that you will contact us when you are ready.
• Call your Realtor and go look at homes that look like they meet your needs. This is the fun part. Be ready. We will work wtih you to evalute the property and assure your best interests. You will get honest, personal, service.

Loan Costs

The same care and consideration you give to finding the right house should be applied to your search for the right lender. For most home-buyers a major determining factor in selecting a lender is the cost of the loan. But how do you determine the total cost of a loan?

Doing Your Homework

While most buyers concentrate on interest rates, it is best to look at all the costs associated with a loan.  Loans include the quoted interest rate, points and closing costs.

A number of fees are associated with the loan, including:

·         Appraisal - A carefully documented opinion of value by a licensed, professional appraiser.

·         Credit Report - A detailed report of your credit, employment and residence history prepared by a credit bureau.

·         Principal - The amount owed on a loan which does not include interest or other fees.

·         Document Fees, Loan Fees and Processing Fees - Miscellaneous fees charged by the lender.

·         Discount Points - Points paid in addition to the loan origination fee to get a lower interest rate. (1 point = 1 percent of loan amount)

·         Origination Points - the total number of points paid by the borrower at closing. (1 point = 1 percent of loan amount)

·         Interest Rate - A percentage of a loan or loan value that is paid to the lender as compensation for loaning funds.

Using the Annual Percentage Rate (APR) to Compare Mortgage Loans

The APR was designed to help borrowers understand the relative costs of a mortgage loan. The APR takes into account the various fees associated with the loan, which is why it is often higher than the interest rate. Understand that not all lenders calculate a loan's APR in the same way. That is why this should be only one of the factors used in selecting the best mortgage for you.

Locking-in Interest Rates

Another factor to consider when selecting a lender is whether the lender will lock-in the loan interest rate and points. For more in-depth information about selecting a lender and mortgage, visit this very useful site: Online-home-mortgage.net - Online home mortgage loan and refinance information or give us a call and we will be happy to refer you to a local loan professional that we trust who can assist you through the process.